Grayscale, a well-known crypto asset management firm, has recently completed its quarterly fund rebalancing by removing two significant digital assets, Cardano and Cosmos, from its multi-asset funds. In a recent announcement, the company stated that Cardano's ADA token was eliminated from the Grayscale Digital Large Cap Fund (GDLC), while Cosmos's ATOM token was removed from the Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE).

The funds were adjusted by liquidating Cardano holdings in GDLC and Cosmos in GSCPxE, with the proceeds reinvested in other fund components based on their respective weights. The current composition of the funds includes Bitcoin, Ethereum, Solana, XRP, Avalanche, Polkadot, and Polygon.

No changes were made to the DeFi Fund, which consists of Uniswap, MakerDAO, Lido liquid staking protocol, Aave, and Synthetix.

Following this news, ADA and ATOM experienced market declines, with Cardano dropping by 4% and Cosmos by $10.7. Both assets have seen double-digit losses in the past month, performing worse than Bitcoin and Ethereum. ADA is down 10% on the weekly chart and is currently 81% below its all-time high, while ATOM has dropped over 10% in the past week and is trading 75% below its record high.