Grayscale Buys Cardano (ADA) for Grayscale Digital Large Cap Fund
Grayscale announced that Cardano is now part of its Digital Large Cap Fund. The leading asset management company announced its quarterly rebalancing that brought up Cardano to be the third-largest holdings of the company.
Welcome aboard, #Cardano. We have adjusted the portfolio of Grayscale Digital Large Cap Fund to now include $ADA.
Cardano Becoms 3rd Largest Crypto In Grayscale Digital Large Cap Fund
Grayscale announced that there was a little adjustment to accommodate Cardano into the portfolio. Grayscale sold some of the components to buy ADA. Before buying Cardano, Grayscale also made the same adjustment in April to buy Chainlink (LINK).
Grayscale’s move to buy Cardano (ADA) has caused the price to gain by at least 1.09% following the announcement. Also, ADA now has the third place in the funds after Bitcoin and Ethereum.
Cardano (ADA) noticed several positive developments in recent times, and it seems that the trend is continuing. After its network upgrade, the token price rose impressively.
While the community is still awed by that, Grayscale has taken another huge step to push the token further towards the positive trend.
The fund management company made this ground-breaking announcement on Twitter. From what the team tweeted, their main aim is to expose the clients to at least 70% of all the crypto in the market.
So, this is why they’ve concentrated on adding the best and top crypto to their multi-billion portfolio. According to what Grayscale Finance Vice President Edward McGee said, the firm is excited about the addition.
He further stated that they want all their clients to access top digital currencies via regulated product offerings that they can relate with like others. Now, ADA makes up 4.26% of the Fund’s digital assets.
Grayscale crypto asset portfolio allocation by percentage | Source: Grayscale on Twitter
Grayscale Quarterly Review Recap
The asset management firm has always maintained a tradition of reviewing all the assets in its portfolio every quarter of the year.
Grayscale reviews the composition of Grayscale Digital Large Cap Fund on a quarterly basis. The next Quarterly Review will occur at the end of September 2021. For more information, please visit: https://t.co/qXc1JPTQQn
Such action is to ensure that they present their clients with the best opportunities to invest their capital. In this quarterly review, the firm’s target is Cardano, and it sold off some firm’s components to purchase the crypto.
The community is also waiting for the next quarterly review, which will take place in September. Speculation is high as to which digital asset the firm will choose to add to its portfolio.
How Will The Announcement Affect Cardano (ADA)?
In reaction to the announcement, Cardano’s founder Charles Hoskinson retweeted the announcement to show everyone in the crypto community.
This is indeed a groundbreaking achievement for the Cardano team and community. Given that Grayscale is a regulated and reliable digital asset management firm, it’s obvious that ADA will gain more credence in the crypto market.
Now that the token appears side by side with Bitcoin and Ethereum, it will record more investments and huge demand will follow. The demand will cause the price to soar higher than others in growth.
The announcement of Grayscale adding Cardano to its portfolio is expected to shoot ADA to the moon. The price of ADA is rising gradually, thanks to Grayscale.
