Grayscale now holds 90% of its Digital Large Cap Fund in Bitcoin and Ethereum after Q4 rebalancing.
Cardano replaced Avalanche in the fund due to its 75% growth while Avalanche showed weaker performance.
Grayscale seeks ETF approval as SEC leadership changes raise hopes for more crypto-friendly regulations.
Grayscale Investments has made significant changes to its Digital Large Cap Fund. Bitcoin and Ethereum now dominate 90% of the portfolio. Bitcoin accounts for 73.52%, while Ethereum holds 16.16%.
https://twitter.com/cryptolens_news/status/1877521992993083828
The fund removed Avalanche and added Cardano with a 1.44% allocation. This change reflects Cardano's 75% price increase over the last year. Avalanche performed poorly during the same period. XRP and Solana retained their positions with 5.05% and 3.83% allocations.
Changes Across Other Grayscale Products
Grayscale also adjusted several other funds. The Decentralized AI Fund introduced Livepeer with a 2.83% weighting. It removed Synthetix from the Decentralized Finance Fund and replaced it with Curve, weighted at 6.71%.
The Smart Contract Platform Ex-Ethereum Fund added Sui with a 7.93%. Solana and Cardano remain the largest holdings in this fund. These two assets together account for over 75% of the portfolio.
Plans for Regulatory Approvals
Grayscale plans to convert its large cap fund and other products into exchange-traded funds. The firm is optimistic about regulatory changes under new SEC leadership. Paul Atkins is expected to replace Gary Gensler as SEC Chair. This transition may lead to policies that favor cryptocurrency ETFs.
Grayscale aims to secure approval for ETFs tied to Solana, XRP, Litecoin, and HBAR. A more favorable regulatory environment could help the company achieve its goals.
Strategic Adjustments Reflect Market Trends
Grayscale's portfolio changes show a focus on adapting to market performance. Adding Cardano and Sui aligns with strong growth trends. Removing Avalanche highlights the firm's response to underperformance. These adjustments ensure the portfolio remains competitive in a dynamic crypto market.
Quarterly rebalancing and plans for ETFs underscore Grayscale's commitment to innovation. These efforts aim to strengthen investor confidence and keep pace with market developments.
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