Crypto Asset Management Firm Grayscale Introduces Cardano Support

Kavya  |  Jul 3, 2021

Grayscale, the world's largest crypto asset management firm, is expanding its investment offerings to introduce Cardano support (ADA).

Grayscale Introduces Support For Cardano (ADA)

The firm has announced the introduction of ADA to the Grayscale Digital Large Cap Fund, which provides retail and institutional investors with exposure to a variety of altcoins.

Despite its newness, Grayscale has made ADA the fund's third-largest investment.

As of July 1st, the fund comprised 67.47% Bitcoin (BTC), 25.39 percent Ethereum (ETH), and 4.26% Cardano (ADA).

Bitcoin Cash (BCH), Litecoin (LTC), and Chainlink receive about 1% or less of the fund's allocation (LINK).

Grayscale used to have XRP in the fund, but the company withdrew it earlier this year after the Securities and Exchange Commission accused Ripple of marketing the cryptocurrency as an unregistered security.

Grayscale claims it is debating whether to support a slew of cryptocurrencies, including Solana (SOL) and Polygon (POLY) (MATIC).

Cardano is a blockchain network founded by Charles Hoskinson, co-founder of Ethereum.

Reason Firm Introduces Support For Cardano (ADA)

The fund's goal is to provide investors with exposure to cryptocurrencies with the highest market capitalizations. The fund is evaluated quarterly to add or withdrawing coins, but weightings are adjusted daily.

Grayscale is a crypto-focused asset management business. It also provides trusts for several cryptocurrencies, the most popular of which are bitcoin and ether. 

While the popularity of these trusts has grown over the last year, several have lately been affected by introducing competing products, with the Grayscale Bitcoin Trust (GBTC) presently trading at a -9.5% discount. 

As a result, the quantity of fresh money flowing into the fund has dropped.

Aside from Cardano, the fund has bitcoin cash (1.03%), Litecoin (0.99%), and Chainlink (0.86%).

So far this year, Grayscale has made a few modifications to the large-cap fund. The business pulled XRP from the fund on January 5 after the Securities and Exchange Commission (SEC) launched a complaint against Ripple, saying it issued unregistered securities. 

Chainlink was introduced to the fund on April 6.

 

Related News