Grayscale Investments, the world’s largest digital asset manager, announced that it added Cardano (ADA) to its Digital Large Cap fund as a result of its evaluation according to its second quarter performance.
According to a press release released Friday, the company sold some of the assets in the fund and used the proceeds to buy Cardano (ADA).
- The weight distribution of the Digital Large Cap fund is listed as 67.47% Bitcoin, 25.39% Ethereum, 4.26% Cardano, 1.03% Bitcoin Cash, 0.99% Litecoin and 0.86% Chainlink as of July 1.
- “Digital currencies offer a unique opportunity for investors looking to diversify their portfolios” and Grayscale is “proud to offer a regulated product” to its clients, said Edward McGee, VP of Finance at Grayscale.
- The Digital Large Cap fund under the umbrella of Grayscale aims to include cryptocurrencies that meet 70% of the total value of the market in the crypto money market.
- Founded by Charles Hoskinson and with a market capitalization of over $43 billion at the time of writing, Cardano is positioned as the 5th largest cryptocurrency in this regard according to CoinGecko.
Cardano (ADA) Added to Grayscale’s DLC Fund
“We adjusted the Grayscale Digital Major Equity Fund portfolio by selling certain amounts of existing fund components proportional to their weight and using the cash proceeds to purchase Cardano (ADA).”
According to Grayscale Vice President of Finance Edward McGee, the Grayscale Digital Large Cap Fund is a passive, rules-based strategy that aims to be open to 70% of the digital asset market. McGee also added that Grayscale is committed to offering investors the opportunity to diversify their portfolios in digital assets.
“Digital currencies offer investors a unique opportunity to diversify their portfolios, and Grayscale is proud to provide our investors with access to leading digital currencies through regulated, familiar product offerings.”
This development marks an important milestone for Cardano as it will offer the fifth largest cryptocurrency by market capitalization to a wider range of both retail and institutional investors. For interested investors, ADA investments through the fund can be made in cash or in-kind denoting contributions from other digital assets. However, the fund is still limited to accredited investors.
Finally, Cardano is poised to launch smart contracts in the blockchain ecosystem, a move that its parent company IOHK says will put Cardano on par with and even ahead of similar smart contract platforms like Ethereum, Solana, and Polkadot.
Hello there! My name is Oktay from Tokensboss editors. I introduce myself as a business graduate and writer. I have been doing research on cryptocurrencies and new business lines for over 2 years.