Grayscale Investments Rebalances Portfolio
On January 4, 2024, Grayscale Investments strategically reshaped its Digital Large Cap Fund portfolio, incorporating XRP and AVAX, influenced by XRP’s legal resolution and CNBC visibility.
Bill Morgan’s Response
Bill Morgan, a lawyer and crypto enthusiast, took pleasure in Grayscale’s decision to incorporate XRP and Avalanche (AVAX) in its Digital Large Cap Fund. This announcement comes from Grayscale’s Form 8-K filed with the Securities and Exchange Commission on January 4, 2024, Grayscale Investments made its filing.
The filing describes Grayscale’s quarterly review and portfolio rebalancing of its Digital Large Cap Fund. Grayscale strategically added AVAX and XRP, while selling off MATIC demonstrating the firm’s adjustment of its holdings based on market dynamics.
XRP’s Legal Clarity and CNBC Feature
Morgan’s tweet also mentioned the CNBC “crypto watch” feature, which was sponsored by Grayscale and featured prices of cryptocurrencies like Bitcoin, Ethereum as well XRP. The legal transparency reached by XRP thanks to the Torres case probably played a critical part in Grayscale’s decision to reintegrate it into its portfolio, which was an important move away from positioning on XRP trust liquidation back in 2021.
Grayscale’s Portfolio Composition
As of January 4, 2024, Grayscale’s rebalancing, as per the CoinDesk Large Cap Select Index (DLCS), is a portfolio consisting of 69.15% BTC, 21.90% ETH, 3.65% SOL, 2.54% XRP, 1.62% ADA, and 1.14% AVAX as of January 4, 2024.
Grayscale’s Market Reactiveness
Grayscale’s choice to add XRP and AVAX into its Digital Large Cap Fund alongside the upcoming application for Bitcoin ETF points towards market reactiveness as well as characterizes it with anticipation of regulator decisions.
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