Grayscale Investments announced changes in its Digital Large Cap Fund, allocating 90% of its capital to Bitcoin and Ethereum.
Changes in Digital Large Cap Fund
Grayscale Investments restructured its Digital Large Cap Fund, with Bitcoin and Ethereum now representing 90% of the capital. Bitcoin will constitute approximately 73.52% and Ethereum about 16.16% of the total fund. These changes reflect the firm's strategy to focus on leading cryptocurrencies amid market fluctuations. Cardano replaced Avalanche in the fund with a 1.44% allocation due to its 75% price increase over the past year.
Adjustments in Other Grayscale Funds
Aside from its flagship fund, Grayscale made changes across other products as well. The Decentralized AI Fund added Livepeer with a 2.83% stake, highlighting interest in emerging technologies. In the Decentralized Finance Fund, Curve replaced Synthetix with a 6.71% APY. The Smart Contract Platform Ex-Ethereum Fund saw Sui debut with a 7.93% allocation, while Solana and Cardano remain dominant with over 75% of the portfolio.
Plans for Regulatory Approvals
Beyond portfolio adjustments, Grayscale aims to convert its products into exchange-traded funds. The anticipated change in SEC leadership from Gary Gensler to Paul Atkins may pave the way for a regulatory environment more favorable to cryptocurrency ETFs. Grayscale is optimistic about obtaining approval for ETFs linked to assets like Solana, XRP, Litecoin, and HBAR.
These adjustments demonstrate Grayscale's commitment to maintaining its advantage in the volatile digital asset industry and enhancing investor confidence by following current market trends.
