Grayscale Removes Cardano From Its Crypto Large Cap Fund

Grayscale Investments, the world's largest cryptocurrency asset manager, announced on Thursday that Cardano (ADA) has been removed from its Digital Large Cap Fund (OTCQX: GDLC) as a result of the fund's quarterly rebalancing.

The asset manager explained that it adjusted GDLC's portfolio "by selling Cardano (ADA), and using the cash proceeds to purchase existing fund components in proportion to their respective weightings," elaborating:

As a result of the rebalancing, Cardano (ADA) has been removed from GDLC.

The rebalancing of Grayscale's Digital Large Cap Fund's holdings occurred on April 3. As of that date, the fund consisted of Bitcoin (BTC) at 70.96%, followed by Ethereum (ETH) at 21.84%, Solana (SOL) at 4.52%, XRP at 1.73%, and Avalanche (AVAX) at 0.95%.

During the Q4 2023 quarterly rebalancing, Cardano represented 1.62% of the fund's holdings. On January 4, GDLC's fund components were a basket of Bitcoin at 69.15%, Ethereum at 21.90%, Solana at 3.65%, XRP at 2.54%, Cardano at 1.62%, and Avalanche (AVAX) at 1.14%.

The announcement also states that no new tokens were added or removed from Grayscale's decentralized finance (defi) fund (OTCQB: DEFG). Grayscale Smart Contract Platform Ex-Ethereum Fund was also rebalanced and Cosmos (ATOM) was removed from the fund.

Grayscale converted its Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF), which started trading on January 11. Since then, the fund has experienced massive outflows. The asset manager has also filed to launch a spot Ether ETF with the U.S. Securities and Exchange Commission (SEC).