Cryptocurrency asset manager Grayscale Investments has increased its Cardano ($ADA) allocation in its fund offering investors exposure to smart contract blockchain networks while excluding Ethereum ($ETH).
As first spotted by CryptoCapitalVenture founder Dan Gambardello, Grayscale has raised its allocation to Cardano’s ADA on the Grayscale Smart Contract Platform ex Ethereum Fund (GSCPxE) to 32.33% per share, with each GSCPxE share now having 4.34 ADA in it.
Grayscale has increased their allocation towards #Cardano in their Smart Contract Platform Ex-Ethereum Fund. Now 32.33%
This speaks volumes.$ADA pic.twitter.com/GOjREavzp6
— Dan Gambardello (@cryptorecruitr) June 6, 2022
The increased allocation to ADA led to a reduction in the fund’s exposure to other assets, which have seen their allocations slashed. Currently, the fund’s second-largest holding is Solana ($SOL), with a 21.3% allocation, down from 23.3% at launch.
Following Solana comes Polkadot ($DOT), with a 15.09% allocation down from 15.4% at launch, and it’s followed by Avalanche ($AVAX), with a 10.4% allocation, down from 18.4% when the fund was first launched in March.
According to Grayscale CEO Michael Sonneshein, the GSCPxE fund enables investors to bet on a variety of developing platforms instead of betting on one emerging as the primary venue for DeFi and decentralized applications. Other holdings in the fund include Polygon ($MATIC), Stellar ($XLM), Cosmos ($ATOM), and Algorand ($ALGO).
The fund’s holdings are weighted by market capitalization. Last year, Grayscale rebalanced its Digital Large Cap Fund (GDLC) to add a new ADA component to it, allowing investors to get exposure to the cryptocurrency after it moved up over 1,000% in 12 months.
As CryptoGlobe reported, large investors managing approximately $200 billion worth of assets are moving away from the second-largest cryptocurrency Ethereum ($ETH) and are instead betting on three other altcoins: Cardano ($ADA), Polkadot ($DOT), and $XRP.
The crypto community has recently predicted that the price of Cardano’s native $ADA token will surpass the $1 mark by the end of June, after the implementation of the Vasil hard fork, which is set to deliver considerable improvements to the network.
The Vasil hard fork is a major upgrade that will involve four Cardano Improvement Proposals (CIPs). The hard fork has already seen ADA outperform numerous other cryptocurrencies, even amid a wider cryptocurrency market downturn exacerbated by the collapse of the Terra ecosystem. That performance saw ADA become the sixth-largest cryptoasset by market capitalization this week, surpassing $XRP.
