Bill Morgan Commends Grayscale’s Astute Decision to Include XRP and AVAX in Digital Large Cap Fund

Grayscale Investments, in a strategic move, recently revamped its Digital Large Cap Fund portfolio by incorporating XRP and AVAX, as disclosed in its SEC filing on January 4, 2024. This decision was influenced by the legal resolution of XRP and its increased visibility on CNBC.

Bill Morgan, a lawyer and crypto enthusiast, expressed his approval of Grayscale’s decision to include XRP and Avalanche (AVAX) in its Digital Large Cap Fund. This announcement was made in Grayscale’s Form 8-K submitted to the Securities and Exchange Commission on January 4, 2024.

The filing details Grayscale’s quarterly review and rebalancing of its Digital Large Cap Fund portfolio. The company strategically added AVAX and XRP while divesting MATIC, demonstrating its ability to adjust its holdings based on market dynamics.

Morgan highlighted the legal clarity provided by the Torres case regarding the standing and potential use of XRP, particularly after the dissolution of the 2021 trust due to an ongoing lawsuit.

Morgan’s tweet also mentioned CNBC’s “crypto watch” feature, which was sponsored by Grayscale and displayed the prices of cryptocurrencies such as Bitcoin, Ethereum, and XRP. The legal transparency achieved by XRP through the Torres case likely played a significant role in Grayscale’s decision to reintegrate it into its portfolio, marking a departure from its previous stance on XRP trust liquidation in 2021.

Following the rebalancing on January 4, 2024, Grayscale’s portfolio, based on the CoinDesk Large Cap Select Index (DLCS), now consists of 69.15% BTC, 21.90% ETH, 3.65% SOL, 2.54% XRP, 1.62% ADA, and 1.14% AVAX.

In conclusion, Grayscale’s inclusion of XRP and AVAX in its Digital Large Cap Fund, along with its upcoming application for a Bitcoin ETF, demonstrates its responsiveness to market trends and its anticipation of regulatory decisions.

Tags: Altcoins, Ripple (XRP)