In brief
- Grayscale Investments has added LINK to its Digital Large Cap Fund.
- The news follows the launch of the Grayscale Chainlink Trust last month.
Digital asset manager Grayscale Investments has announced the addition of LINK, the native token of decentralized oracle network Chainlink, to its Digital Large Cap Fund.
The adjustment in the Digital Large Cap Fund's makeup was made by selling a share of its existing components, and using the proceeds to purchase LINK. As of Friday, April 2, Grayscale’s adjusted Large Cap Fund had a total of $538.2 million in assets under management, with LINK amounting to 0.87% of the basket.
The rest of the fund is made up of 80.5% Bitcoin (BTC), 16.86% Ethereum (ETH), 0.78% Bitcoin Cash (BCH), and 0.99% Litecoin (LTC). According to Grayscale, no other assets qualified for inclusion in the fund.
Launched in 2018, Grayscale’s Digital Large Cap Fund allows investors exposure to a weighted portfolio of large-cap cryptocurrencies without the need to buy and store them directly. Its makeup is reviewed every three months, with the weighting of the components either increasing or decreasing.
For example, while Bitcoin’s presence in the fund over the past year has been broadly within the 80% range, the share of Ethereum, the second largest cryptocurrency by market cap, has increased over the same period of time from 9.6% to its current value of 16.86%.
Digital assets management firm Grayscale has increased the weighting of Bitcoin and Ethereum in its Digital Large-Cap (DLC) investment fund—at the expense of other major altcoins.
Grayscale announced in a Twitter thread on July 12 that the composition of its DLC fund had shifted moving into Q2 of 2020. Between March and June, the percentage of Bitcoin in the fund increased from 81% to 81.5%, while Ethereum’s weighting in the fund increased from 9.6% to 11.7%.
The presence of three other major a...
On the other hand, the previous quarterly re-evaluation of the fund saw Grayscale dispose of its entire stash of Ripple’s XRP, which at the time amounted for about 1.5% of the basket.
Grayscale's growing number of crypto trusts
Today’s announcement follows the launch last month of five new Grayscale cryptocurrency trusts, with Chainlink being one of them. The asset manager also launched trusts for Basic Attention Token (BAT), Decentraland (MANA), Filecoin (FIL), and Livepeer (LPT).
The new additions saw the New York-based firm grow the number of its crypto trusts to a total of 14, including the flagship Bitcoin Trust (GBTC). As of Monday, April 5, the total amount of assets under management in all Grayscale’s trusts was $46.1 billion.
Earlier this week, Grayscale revealed that it was "100% committed" to converting the Grayscale Bitcoin Trust into a Bitcoin ETF, following a month in which GBTC has traded at a discount.
With a market cap of over $13 billion, Chainlink is currently the tenth-largest cryptocurrency. In the last 24 hours, the price of LINK, according to CoinGecko, is up 3.9% to $32.65.
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