Grayscale, an operator of the largest cryptocurrency-based OTC investment products, reconsidered the weightings of its fund components following Q4 2023 revisions. Some major altcoins and major DeFi assets were removed from Grayscale’s baskets , but the return of XRP is the most anticipated development.
Grayscale, an operator of the largest cryptocurrency-based OTC investment products, reconsidered the weightings of its fund components following Q4 2023 revisions. Some major altcoins and major DeFi assets were removed from Grayscale’s baskets , but the return of XRP is the most anticipated development.
XRP and AVAX in, MATIC out: Grayscale Upgrade Wallets
After the January 2024 rebalance, Grayscale began using cash proceeds to purchase Avalanche (AVAX) and XRP, two of the top 10 altcoins by market cap. In the updated structure of its Grayscale Digital Large Cap Fund (OTCQX: GDLC), AVAX and XRP will be responsible for 1.14% and 2.54% of the portfolio value, respectively.
At the same time, Polygon (MATIC) was removed from GDLC; All MATIC funds supporting the product will be sold by Grayscale. This decision is likely intended to “advance” the introduction of POL as the new core cryptocurrency of the Polygon 2.0 ecosystem.
Bitcoin (BTC) and Ethereum (ETH) combined make up more than 91% of the portfolio backing GDLC stock. The cryptocurrencies Solana (SOL) and Cardano (ADA) represent 5.5% of the portfolio.
XRP was removed from the Fund on January 4, 2021, following SEC allegations against Ripple Inc. and its key figures. In mid-July 2023, the District Court for the Southern District of New York ruled that XRP is not a security; The SEC’s appeal was dismissed in October 2023.
As Guru-Investingpreviously reported, Barry Silbert resigned from the board of directors of Grayscale Investments in December 2023.
XRP Price Falls Below Two-Month Lows
In addition to reconsidering the GDLC portfolio, Grayscale adjusted the asset structure supporting its other popular product, Grayscale DeFi Fund (OTCQB:DEFG).
Curve DAO’s CRV token was removed from the wallet. As of January 2024, the fund only works with Uniswap (UNI), Lido Finance (LDO), MakerDAO (MKR), Aave (AAVE), and Synthetix (SNX).
Despite the great achievement (XRP is once again one of the largest cryptocurrency pools available to retail clients), its price action is losing steam.
Today, it fell below $0.55 on major spot exchanges. As such, the price of XRP erased all gains associated with the initial phase of the bull market: its rates fell to the values of the end of October 2023.