Key Takeaways
- Grayscale has increased Bitcoin and Ethereum allocations to a combined 90% in its Digital Large Cap Fund.
- Cardano was added to the fund with a 1.44% allocation, corresponding to a 75% price increase over the past year.
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Grayscale Investments raised Bitcoin and Ethereum holdings to a combined 90% in its Digital Large Cap Fund during its Q4 2024 rebalancing.
Bitcoin has a share of 73.52%, while Ethereum holds 16.16% of the portfolio.
The fund manager removed Avalanche from the fund and added Cardano with a 1.44% allocation. XRP and Solana maintain positions of 5.05% and 3.83%, respectively.
The changes follow Cardano's 75% price increase over the past year, while Avalanche showed weaker performance over the same period.
The rebalancing, which follows the CoinDesk Large Cap Select Index methodology, extended to several other Grayscale products.
The Decentralized AI Fund added Livepeer with a weight of 2.83%, and the Distributed Finance Fund introduced Curve at 6.71%, replacing Synthetix.
In the Ex-Ethereum Smart Contract Platform Fund, Grayscale Sui contributed with an allocation of 7.93%. Solana and Cardano remain the main holdings in this fund, making up more than 75% of the portfolio together.
The company is seeking regulatory approval to convert its large-cap funds and other products into exchange-traded funds.
Many are now expecting more crypto-friendly policies with Gary Gensler stepping down as SEC Chairman, to be replaced by Paul Atkins.
This trend has fueled expectations for new ETFs, including Solana, XRP, Litecoin, and HBAR.
In this climate, Grayscale could get ETF approval for its large-cap fund if those products get regulatory approval.
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