Grayscale Rebalances Crypto Large Cap Fund to 90% Bitcoin and Ethereum

By Connor Sephton

Grayscale Investments has announced a reshuffle of its crypto-focused funds—with winners and losers starting to emerge.

The asset manager has ditched Avalanche from its Digital Large Cap Fund in order to make room for a small allocation of Cardano.

Bitcoin and Ethereum make up 90% of this portfolio, with the remainder split among XRP, Solana, and now Cardano.

In an announcement, the company stressed this adjustment was based on fluctuations in the CoinDesk Large Cap Select Index.

Avalanche has struggled to perform in the current bull run—with AVAX's price basically flat compared with a year ago. By comparison, its replacement Cardano has rallied by 75% over the same period.

Elsewhere, there's been a reshuffle in the GSCPxE Fund, which tracks smart contract platforms except Ethereum.

Solana and Cardano carry a 75% weighting in this portfolio, with Avalanche on about 9%. A rebalancing means Sui has been added into this fund with an allocation of 8%. This leaves a little room for exposure to NEAR Protocol and Polkadot.

Changes are also being made to the AI Fund, which by comparison is more evenly split across a flurry of crypto projects.

NEAR Protocol has a weighting of about 30% here, followed by Render on 20%, Bittensor on 19%, Filecoin on 17% and The Graph on 10.45%. A small bet of 2.8% has now been made on Livepeer, which offers decentralized infrastructure for building video applications.

Meanwhile, Synthetix has been swapped out for Curve as the smallest constituent in the Grayscale Decentralized Finance Fund, which is heavily dominated by Uniswap (47.88%) and Aave (27.87%.)

Grayscale Investments rebalances the composition of its multi-asset funds once a quarter, and is looking to expand upon the exchange-traded funds it offers to investors on Wall Street.

It's already looking to convert its Digital Large Cap Fund and Solana Trust into ETFs—and hopes that a more relaxed regulatory atmosphere at the SEC under Donald Trump will pave the way for their approval.

Edited by Stacy Elliott.

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