Prominent digital asset manager Grayscale recently adjusted the weightings of key products within its portfolio. Notably, changes were made to the Grayscale Digital Large Cap Fund, Grayscale Fund, and Grayscale Smart Contract Platform Ex-Ethereum Fund.
The firm incorporated two major cryptocurrencies into its Digital Large Cap Fund, including Ripple’s XRP and Avalanche’s AVAX.
Why Grayscale Added XRP and AVAX
The rationale behind Grayscale’s decision stems from CoinDesk’s recent rebalancing of its Large Cap Select Index (DLSC) on January 3. This index serves as the foundation for assets within the Grayscale Fund. As the index provider included and AVAX in its rebalance, Grayscale mirrored this adjustment to maintain alignment with the updated composition.
Grayscale has restructured its portfolio, selling off parts of its current assets according to their respective weightings. The proceeds from these sales were used to acquire AVAX and XRP. It is important to note that , belonging to Polygon, was entirely eliminated from the Fund.
The Digital Large Cap Fund now encompasses 69.15% BTC, 21.90% ETH, 3.68% , 1.62% ADA, 2.54% XRP, and 1.14% AVAX.
A closer look showed that the negative trend has persisted for around a month for XRP. Its price has fallen by more than 10% to its lowest value in the last three months at $0.567.
On the other hand, AVAX was one of the few digital assets that finished last year strongly, up by around 33% in the last 30 days to $34. The blockchain is also enjoying renewed attention thanks to its thriving ecosystem.
