Grayscale, a US-based cryptocurrency asset management company, recently announced that it has added Cardano, a proof-of-stake blockchain platform, to its Large-cap Digital Fund.
Grayscale Sells Existing Fund Components to Acquire Cardano (ADA)
According to an official press release, the cryptocurrency company has adjusted its digital large-cap fund portfolio by selling a certain number of existing fund components in proportion to their respective weights and using the cash proceeds to purchase Cardano (ADA).
Cardano (ADA) is one of the top-performing cryptocurrency assets by 2021, growing more than 700%. ADA is currently the fifth-largest digital asset by market cap with a market value of more than $45 billion. In the past 7 days, Cardano is up almost 10%.
Edward McGee, Grayscale’s vice president of finance, commented on Cardano’s latest addition to Grayscale’s Digital Large Cap Fund: “We are excited to welcome Cardano to our Digital Large Cap Fund’s portfolio as we work to ensure that our diversified Fund can safely hold assets that collectively comprise 70% of the entire digital asset market. Digital currencies represent a unique opportunity for investors to diversify their portfolios, and at Grayscale, we are proud to provide our investors with access to leading digital currencies through regulated, familiar product offerings.”
Cardano was founded by Charles Hoskinson, the co-founder of Ethereum, and is a proof-of-stake blockchain platform.
Grayscale cryptocurrency holdings
According to the latest data released by Grayscale, the company currently manages $29.8 billion in cryptocurrency assets. The company manages bitcoin assets valued at more than $21 billion. Grayscale’s Ethereum Trust is the company’s second most valuable mutual fund, managing more than $6.5 billion in ETH assets.
Commenting on the composition of its Digital Large Cap Fund, Grayscale commented: “At the end of the day on July 1, 2021, the Fund Components were a basket of 67.47% Bitcoin (BTC), 25.39% Ethereum (ETH), 4.26% Cardano (ADA), 1.03% Bitcoin Cash (BCH), 0.99% Litecoin (LTC) and 0.86% Chainlink (LINK).”