Bitcoin and Ethereum are no longer the only crypto-currencies being snapped up by big companies. In fact, the Grayscale Digital Large Cap (GDLC) fund has just announced the allocation of 4% of its funds to Cardano (ADA), behind the 2 crypto asset leaders.
Grayscale diversifies its horizons
According to information from The Block, Cardano is gaining weight in the Grayscale Digital Large Cap. As of July 1, 2021, just under 93% of this fund was actually invested in Bitcoin (67.47%) and Ethereum (25.39%). With a 4.26% share, Cardano holds the top spot there compared to the remaining cryptocurrencies.
For clarification, Grayscale Digital Large Cap is a quarterly updated fund designed to give investors exposure to 70% of cryptocurrencies, with the largest market caps. Its weightings are changed daily.
After Grayscale pulled XRP from Ripple on Jan. 5, 2021, the token was then replaced by LINK on April 6 to fill the void left.
Grayscale, a Bitcoin and cryptocurrency ogre serving institutional clients
Back in June, Grayscale announced that it was looking at 31 cryptocurrencies that could be added to its investment products, including ADA. The company seems to want to publicly display its optimism that institutional interest in cryptos will grow. Indeed, its CEO, Michael Sonnenshein, had stated in April:
“Digital currencies have reached an inflection point. Investor demand has never been stronger, and we are seeing new entrants every day in what has surely become an asset class in its own right.”
Grayscale is best known in the cryptosphere for its dedicated Bitcoin fund, the Grayscale Bitcoin Trust (GBTC), which has the highest amount of assets under management compared to the 13 other investment products the company offers.
While Grayscale is still waiting for the SEC to validate its Bitcoin ETF project, another event seems to be a sword of Damocles hanging over the cryptosphere. Oh, yes! GBTC’s 50,000 bitcoins, which will be released by the end of the month, is already putting pressure on traders and investors, who fear a massive sell-off and another bigger drop in the price of the king of cryptos.
