Reshab AgarwalThe grayscale fund has been primarily known for Bitcoin, but now it also accommodates ADA. The fund recently announced that they had sold some existing fund components to make space for Cardano(ADA) in their holdings. As of now, the fund has 67.47% in Bitcoin and 25.39% in Ethereum, covering the majority of their portfolio. Along with that, ADA’s weightage is 4.26%, while BCH, LTC and LINK are all nearly 1% each. Considering that Grayscale is the largest digital asset manager, this is a big development for ADA.
Welcome aboard, #Cardano. We have adjusted the portfolio of Grayscale Digital Large Cap Fund to now include $ADA.
— Grayscale (@Grayscale) July 2, 2021
Grayscale fund accommodates ADA.
In order to add ADA to their portfolio, they have sold some part of their previous holdings. The cash proceeds generated from this was used to purchase ADA. It is quite nice to see this as the Grayscale fund has also added LINK to their portfolio, not a long back. So, they are becoming quite open to considering good alts as an investment option. The grayscale fund has also said that this is an opportunity for everyone to diversify their portfolio as digital assets have a lot of choices. And they are trying to bring that diverse offering to their customers through a regulated offering.
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They manage their holdings every quarter, so you could again see a change in their portfolio in October (q4 2021). Maybe they will add some other coin like XRP or maybe a DeFi to their holdings. Their diversification will help investors depend on them better without looking for other investment vehicles. And it is obvious because anyone investing in crypto through a fund must not be that interested in buying crypto through an exchange.
About Cardano(ADA)
Cardano is based on a proof of stake mechanism that makes it a much efficient coin as compared to BTC or ETH. It also has high scalability, interoperability, sustainability because of the current mechanism it’s working on. The cryptocurrency works on the Ouroboros consensus protocol that is secure to use. ADA also has a lot of staking pools that makes it an even better investment. People know that there is a great future ahead for the currency, and they are okay with locked balances for a longer period.
What are your thoughts on Grayscale fund adding ADA to their portfolio? And have you personally invested in the coin? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.