Grayscale Adds Cardano (ADA) To Its Digital Large Cap Fund
Cardano (ADA) is now part of the Grayscale Digital Large Cap Fund. According to a recent tweet by Grayscale, Cardano has been the latest addition to the fund. This fund aims to provide investors with exposure to 70% of the cryptocurrency market. By adding Cardano, Grayscale had to sell some of the other assets they hold.
Grayscale Adds Cardano to the Digital Large Cap Fund
Grayscale continues to expand and they have decided to add Cardano to the Grayscale Digital Large Cap Fund. The fund includes Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Bitcoin Cash (BCH), Litecoin (LTC) and Chainlink (LINK). Cardano now represents 4.26% of the fund, become the third-largest component after Bitcoin and Ethereum.
Bitcoin represents 67.47% of the fund, Ethereum 25.39%, Bitcoin Cash 1.03%, Litecoin 0.99% and Chainlink 0.86%. The company informed they had to adjust their portfolio in order to add Cardano and keep it stable.
On the matter, they said:
“We adjusted the portfolio of Grayscale Digital Large Cap Fund by selling certain amounts of the existing Fund components in proportion to their respective weightings and using the cash proceeds to purchase #Cardano ($ADA).”
Edward McGee explains that they are excited to have added Cardano to the Digital Large Cap Fund’s portfolio. The company is continuously working to ensure that the fund represents 70% of the digital asset market. At the same time, he stated that they believe virtual currencies represent a unique opportunity for investors to have more diversified portfolios.
“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,” said McGee.
Cardano has also been growing over the last few years as a platform that works with a Proof-of-Stake (PoS) consensus algorithm. Created by Charles Hoskinson, Cardano wants to be more scalable and efficient than other blockchain networks in the market. In recent months, new updates have been launched and this trend could continue in the coming years.
Investors that get access to the Grayscale Digital Large Cap Fund can easily gain exposure to virtual currencies without being worried about storing, safekeeping and buying the digital assets themselves. The fund works with shares that represent a basket of virtual currencies. The weightings of the fund component change on a regular basis to be sure it represents 70% of the crypto market.
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