Cardano (ADA) Returns to Grayscale Digital Large Cap Fund
- Cardano returns to the GDLC with 1,44% of the composition.
- 300% appreciation reinforces interest in ADA.
- ETF may increase institutional adoption of the asset.
Cardano (ADA) has rejoined the Grayscale Digital Large Cap Fund (GDLC), one of the largest crypto funds managed by Grayscale, marking an important moment for the asset. After being removed from the portfolio in April 2024 due to a restructuring in the CoinDesk Large Cap Select (DLCS) index, which considers the five most liquid crypto assets outside of stablecoins in the top 20 by market capitalization, ADA now occupies 1,44% of the fund. This move signals not only recognition of Cardano’s growing liquidity, but also renewed confidence in the potential of its blockchain ecosystem.
At the time of publication, Cardano price is quoted at $0,9446 with a drop of 8.5% in the last 24 hours.
Since its delisting, ADA has shown a remarkable recovery in the market. Between October and December 2024, the asset saw its valuation exceed 300%, jumping from $0,3263 to highs of $1,3264. This impressive performance was driven by a combination of factors, including technological advances on the Cardano network, strategic partnerships, and increased adoption by institutional investors. The return to the GDLC reflects this positive momentum and reinforces ADA’s relevance among the main global crypto assets.
🚨Cardano has been added to the Grayscale Digital Large Cap Fund.
This is notable because it was removed back in April.
The $ ISLANDS wave is coming. pic.twitter.com/cMPNPgH0uu
— Dan Gambardello (@cryptorecruitr) January 7, 2025
The decision to reinstate Cardano in Grayscale’s portfolio may also have been influenced by the asset’s increased trading volume in recent months. The fund’s current composition now includes Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP and ADA, replacing Avalanche (AVAX). The allocation of over $11 million in ADA in GDLC cements its position as a preferred choice for investors seeking exposure to innovative technologies in the blockchain space.
Furthermore, Cardano’s institutional exposure is expected to increase further in the near future. Grayscale has filed a proposal to convert GDLC into an exchange-traded fund (ETF) in October 2024. Should this approval be granted, ADA could benefit from a significant increase in its reach and investment volume. Chris O, an active Cardano advocate, highlighted the importance of this move by commenting: “With the return to GDLC and the possibility of converting to an ETF, ADA will have even more exposure in the US financial markets.”
The cryptocurrency market is closely monitoring ADA’s next steps, especially given the optimistic projections from analysts. The inclusion in the GDLC, combined with the currency’s bullish momentum, reinforces its relevance in the sector and points to a promising future.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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