XRP & AVAX Enter Grayscale’s Large Cap Fund As MATIC Exits

Grayscale Investments, the world’s largest crypto asset manager, has revealed updated fund component weightings for its key products. These include the Grayscale Digital Large Cap Fund (GDLC), Grayscale DeFi Fund, and Grayscale Smart Contract Platform Ex-Ethereum Fund. It has added Ripple’s XRP and Avalanche (AVAX) to GDLC.

Grayscale Portfolio Revision

According to a recent press release, these adjustments were made in line with the CoinDesk Large Cap Select Index methodology during the fourth quarter 2023 reviews. In the latest rebalancing, GDLC’s portfolio saw changes with the sale of specific fund components as Polygon (MATIC) was removed from its holdings.

As of January 4, 2024, GDLC’s major fund components include Bitcoin (BTC) at 69.15% and Ethereum (ETH) at 21.90%. Whilst, it also considers other digital currencies like Solana (SOL) at 3.65%, XRP at 2.54%, Cardano (ADA) at 1.62%, and the newly added Avalanche at 1.14%.

In addition, DEFG witnessed the sale of certain Fund Components in proportion to their weightings during quarterly rebalance. This led to the removal of Curve DAO Token (CRV) from DEFG’s portfolio. The report mentions that DEFG now consists of Uniswap (UNI) holdings at 41.11%, followed by Lido (LDO) at 23.90%. Moreover, the portfolio includes MakerDAO (MKR) at 13.39%, Aave (AAVE) at 12.63%, and Synthetix (SNX) at 8.97%.

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Meanwhile, Grayscale’s GSCPxE Fund’s portfolio remains unchanged. It boasts a huge share in Solana at 44.54% and Cardano (ADA) at 19.77%. Furthermore, other cryptocurrencies considered in the fund portfolio are Avalanche at 13.89%, Polkadot (DOT) at 9.75%, Polygon at 8.25%, and Cosmos (ATOM) at 3.80%.

Spot Bitcoin ETF Filing Update

On Tuesday, Grayscale put forth another S-3 form, as per a January 2 SEC filing. Moreover, after Grayscale Investments’ Chairman Barry Silbert stepped down last week, the company amended its filing to convert Grayscale Bitcoin Trust (GBTC) into a Spot Bitcoin ETF. Analysts suggest Grayscale is now complying with the SEC’s cash-only orders.

Earlier, CoinGape reported that on December 29, 2023, Grayscale Bitcoin Trust submitted a free writing prospectus (FWP) to the SEC. This coincided with other spot Bitcoin ETF issuers updating S-1 forms. Michael Sonnenshein, CEO of Grayscale Investments, said that the crypto asset manager was prepared for the ETF since 2017 with authorized participants like Jane Street and Virtu.

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