Grayscale Increases Bitcoin and Ethereum Allocation to 90%, Adds Cardano to Fund

• Bitcoin and Ethereum dominate 90% of Grayscale's fund.
• Cardano replaces Avalanche after 75% appreciation in the year.
• Grayscale seeks regulatory approval for new crypto ETFs.

Grayscale Investments has announced a significant adjustment to its Digital Large Cap Fund, increasing Bitcoin and Ethereum dominance to 90% of the portfolio. This change reflects an quarterly reallocation strategy, based on the CoinDesk Large Cap Select Index, which tracks the largest-cap digital assets. Bitcoin now occupies 73,52% of the fund, while Ethereum holds 16,16%, reinforcing their role as the leading cryptocurrencies in the market.

At the time of publication, the price of Bitcoin was quoted at US$93.816,34 with a drop of 0.5% in the last 24 hours.

As part of the restructuring, Grayscale removed Avalanche from the fund, citing the cryptocurrency’s poor performance over the past year. While Avalanche remained largely flat, Cardano, which replaced it in the portfolio, saw its value increase by 75% over the same period. Cardano enters the fund with a 1,44% allocation, standing out as one of the best-performing crypto assets recently. XRP and Solana maintain significant positions in the portfolio, with 5,05% and 3,83% allocations, respectively.

In addition to these changes, Grayscale has also made adjustments to other funds. In the Smart Contract Platform Ex-Ethereum Fund, Sui was added with a 7,93% allocation, while Solana and Cardano continue to dominate the portfolio, together accounting for more than 75% of the total. In the fund dedicated to decentralized artificial intelligence, Livepeer was incorporated with a 2,83% allocation, reflecting the growing interest in decentralized infrastructure for video applications. On the other hand, Curve entered the Decentralized Finance Fund with a 6,71% stake, replacing Synthetix.

The firm also highlighted its efforts to convert some of its funds into ETFs. Among Grayscale’s goals is to transform the Digital Large Cap Fund and Solana Trust into exchange-traded products, aiming to expand investor access to cryptocurrencies. The recent change in leadership at the SEC, with Gary Gensler replaced by Paul Atkins, has raised expectations of a more favorable regulatory environment. This scenario could facilitate the approval of new ETFs based on assets such as Solana, XRP, Litecoin and HBAR.

These moves reinforce Grayscale’s position as a leader in digital asset management, adapting quickly to market dynamics and meeting the growing demand for diversified crypto investments. With billions of dollars under management, the firm continues to shape the way institutional and individual investors access the crypto market, aligning with trends and adjusting its strategies to maximize returns and mitigate risks.