Grayscale adjusts large cap fund increasing Bitcoin and Ethereum allocations to 90%

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, responding to a 75% price increase over the past year.

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Grayscale Investments raised Bitcoin and Ethereum allocations to a combined 90% in its Digital Large Cap Fund during its Q4 2024 rebalancing .

Bitcoin maintains a 73.52% share, while Ethereum holds 16.16% of the portfolio.

The asset 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 during the same period.

The rebalancing, which follows CoinDesk Large Cap Select Index methodology, extended to several other Grayscale products.

The Decentralized AI Fund added Livepeer with a 2.83% weighting, while the Decentralized Finance Fund introduced Curve at 6.71%, replacing Synthetix.

In the Smart Contract Platform Ex-Ethereum Fund, Grayscale added Sui with a 7.93% allocation. Solana and Cardano remain the dominant holdings in this fund, accounting for over 75% of the portfolio combined.

The firm is seeking regulatory approval to convert its large cap fund and other products into exchange-traded funds.

Many are now anticipating more crypto-friendly policies with Gary Gensler stepping down as SEC Chair, to be replaced by Paul Atkins.

This shift has sparked expectations for new ETFs, including Solana, XRP, Litecoin, and HBAR.

In this climate, Grayscale could potentially secure ETF approval for its large cap fund if these products gain regulatory acceptance.

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