Prominent Digital Asset Manager Grayscale Adjusts Portfolio Weightings
Grayscale, a leading digital asset manager, recently made changes to the weightings of its key products. Notably, adjustments were made to the Grayscale Digital Large Cap Fund, Grayscale DeFi Fund, and Grayscale Smart Contract Platform Ex-Ethereum Fund.
Grayscale Adds XRP and AVAX to its Portfolio
Incorporating two major cryptocurrencies into its Digital Large Cap Fund, Grayscale added Ripple’s XRP and Avalanche’s AVAX. This decision was based on CoinDesk’s rebalancing of its Large Cap Select Index (DLSC), which serves as the foundation for assets within the Grayscale Fund.
Grayscale’s Portfolio Restructuring
Grayscale restructured its portfolio by selling off parts of its current assets according to their weightings. The proceeds from these sales were used to acquire AVAX and XRP. Notably, Polygon’s MATIC was completely eliminated from the fund.
XRP Community Welcomes the Move
The addition of XRP to Grayscale’s portfolio was met with enthusiasm from the XRP community. Some members even urged the asset manager to launch an XRP-focused fund.
The Price Struggles of XRP and AVAX
Despite Grayscale’s move, the price performance of XRP and AVAX has been negative. Over the past week, their values have fallen by 9% and 11% respectively. XRP has experienced a downward trend for around a month, reaching its lowest value in three months at $0.567.
XRP’s Market Cap Reduction
The continuous downward trend has led to a significant reduction in XRP’s market cap, which currently stands at $30 billion. This is a $7 billion drop from a month ago, causing XRP to slip from the top five crypto assets and now occupy the sixth position.
AVAX’s Strong Performance
On the other hand, AVAX had a strong finish to the previous year, with a 33% increase in the last 30 days. Its price currently stands at $34, and the blockchain is gaining attention for its thriving ecosystem.
Hot Take: Grayscale’s Portfolio Adjustments Reflect Changing Market Dynamics
Grayscale’s decision to add XRP and AVAX to its portfolio highlights the changing dynamics of the cryptocurrency market. While the move was welcomed by the XRP community, both XRP and AVAX have struggled in terms of price performance. It remains to be seen how these adjustments will impact Grayscale’s overall portfolio and whether it will attract more investors to these particular cryptocurrencies.
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