Grayscale Retires ADA and ATOM in Strategic Quarterly Rebalancing of Funds
Grayscale, the world’s largest cryptocurrency asset manager, recently underwent its quarterly fund adjustment, resulting in the removal of Cardano’s ADA token from its Grayscale Digital Large Cap Fund (GDLC) and Cosmos’ ATOM token from its Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE).
The removal was driven by a fund rebalancing strategy, as announced by Grayscale on April 4th. The proceeds from the token sales were reinvested into existing fund components. Following these adjustments, Grayscale’s large-cap fund now consists of 70.96% Bitcoin (BTC), 21.84% Ethereum (ETH), 4.52% Solana (SOL), 1.73% XRP, and 0.95% Avalanche (AVAX).
As for the smart contract platform fund, excluding Ethereum, it now includes 58.41% Solana, 14.56% Cardano, 12.25% Avalanche (AVAX), 8.53% Polkadot (DOT), and 6.25% Polygon (MATIC) after removing ATOM.
Grayscale’s DeFi fund, on the other hand, saw no additions or removals, maintaining its holdings in Uniswap (UNI), Maker (MKR), Lido (LDO), Aave (AAVE), and Synthetix (SNX).
Grayscale and its New Staking-Focused Offering
In March, Grayscale announced the launch of a cryptocurrency investment fund prioritizing cryptocurrencies that offer staking rewards, the Grayscale Dynamic Income Fund, accessible only to clients with over $1.1 million in managed assets or a net worth exceeding $2.2 million.
Performance of ADA and ATOM since the Beginning of the Year
Since the start of the year, Cardano’s ADA token has experienced an 8.1% decline, while ATOM has plummeted over 3.3%, significantly underperforming compared to Bitcoin and Ether. In comparison, Bitcoin has seen a 59% increase since the beginning of the year, while Ether has risen over 40%, according to TradingView data.
