Grayscale Sells Cardano Holdings to Acquire More XRP, Now Holds 16.7M XRP, Anticipates Price Surge in Near Future
Key Points:
– Grayscale Investments, a top crypto asset manager, has made significant changes to its Digital Large Cap (DLC) Fund, attracting attention to its strategic asset reallocation.
– Grayscale has divested from Cardano (ADA) and reinvested the proceeds in XRP and other existing assets, sparking curiosity in the crypto community about the implications for XRP’s market dynamics and Grayscale’s investment strategy.
– XRP now makes up 1.73% of Grayscale’s DLC Fund, equivalent to around 16.7 million tokens.
– Bitcoin remains the largest holding in the DLC Fund, followed by Ethereum and Solana.
– Grayscale’s decision to increase its XRP holdings reflects its confidence in the digital asset’s long-term potential and regulatory clarity.
– The reintroduction of XRP into the fund has led to discussions about the possibility of Grayscale launching an XRP spot exchange-traded fund (ETF), following its recent entry into Bitcoin spot ETFs and ongoing development of an Ethereum ETF.
Grayscale Investments, a prominent crypto asset manager, has recently made significant adjustments to its Digital Large Cap (DLC) Fund, attracting attention to its strategic reallocation of assets.
In a surprising move, Grayscale has divested from Cardano (ADA) and reinvested the proceeds in XRP and other existing assets. This decision has sparked curiosity within the crypto community, particularly regarding the implications for XRP’s market dynamics and Grayscale’s investment strategy.
Grayscale officially announced the quarterly rebalancing of its investment products in a recent press release. Among the affected funds were the Digital Large Cap Fund, Smart Contract Platform Ex-Ethereum Fund, and DeFi Fund.
As part of this rebalancing, Grayscale made notable changes to its DLC Fund by liquidating its Cardano holdings and reinvesting the proceeds into other assets.
Following the rebalancing, XRP now constitutes 1.73% of Grayscale’s DLC Fund. With the fund currently valued at $570,206,758.29, this allocation suggests that Grayscale holds approximately 16.7 million XRP tokens.
Meanwhile, Bitcoin remains the largest holding in the DLC Fund, accounting for 70.96%, followed by Ethereum (ETH) at 21.85% and Solana (SOL) at 4.52%. Avalanche (AVAX) holds the smallest composition at 0.95%. Notably, there were no new token additions to the DLC Fund in Q1 2024.
Grayscale’s decision to increase XRP holdings within the DLC Fund reflects its confidence in the digital asset’s long-term potential and regulatory clarity. XRP now joins other major cryptocurrencies like Bitcoin and Ethereum within Grayscale’s portfolio.
The DLC Fund by Grayscale aims to provide investors with exposure to a diversified portfolio of major crypto assets. The reintroduction of XRP into the fund has sparked discussions about the possibility of Grayscale launching an XRP spot exchange-traded fund (ETF). This comes after Grayscale’s recent entry into Bitcoin spot ETFs and ongoing development of an Ethereum ETF. Market observers see XRP as a logical candidate for a similar offering, given its clear regulatory status.