Grayscale Investments has purchased Cardano (ADA) and added it to the Grayscale Digital Large Cap Fund (GDLC). Reportedly, Grayscale sold proportionate amounts of the existing components in the fund and used the cash proceeds to purchase the ADA.
This addition is part of rebalancing GDLC that brings the fund components to a total of six coins. These are Bitcoin (BTC/USD), Ethereum (ETH/USD), Cardano (ADA/USD), Bitcoin Cash (BCH/USD), Litecoin (LTC/USD), and Chainlink (LINK/USD). BTC remains the dominant cryptocurrency, forming 67.47% of the fund. ETH comes second with a 25.39% share, and while ADA is the most recent addition, it is the third-largest component of the fund, accounting for 4.26% of the portfolio. BCH comes next with 1.03%, followed closely by LTC with a 0.99% stake. LINK is the smallest crypto in the fund with a 0.86% share.
Each share in the fund comprises 0.00044919 BTC, 0.00263059 ETH, 0.71069603 ADA, 0.0046159 BCH, 0.00160755 LTC, and 0.01053027 LINK. Explaining why the amount of each coin in the fund decreases over time, Grayscale said the GDLC does not generate any income. As such, it distributes components to cover its expenses.
An ever-expanding portfolio
Commenting on ADA’s addition to GDLC, Grayscale’s Vice President of Finance, Edward McGee said,
“We are excited to welcome Cardano to our Digital Large Cap Fund’s portfolio as we work to ensure that our diversified Fund can safely hold assets that collectively comprise 70% of the entire digital asset market.”
He added that digital currencies give investors a unique investment. To this end, the company is dedicated to expanding its fund to offer investors access to leading digital assets through regulated and familiar products. This
