Cardano (ADA) Becomes The Latest Addition To Grayscale Digital Large Cap Fund
Grayscale has just added Cardano to its Digital Large Cap Fund. The top asset management firm announced its quarterly rebalancing that brought up Cardano to be the third-largest holdings of the company.
— Grayscale (@Grayscale) July 2, 2021
Cardano Is The Third Largest Crypto In Grayscale Digital Large Cap Fund
According to Grayscale, there was a little adjustment to accommodate Cardano into the portfolio. Grayscale sold some of the components to buy ADA. Before buying Cardano, Grayscale also made the same adjustment in April to buy Chainlink (LINK).
By this recent action, the asset management firm has caused the price of Cardano (ADA) to gain by at least 1.09% following the announcement. Also, crypto now occupies the third position in the funds after Bitcoin and Ethereum.
Cardano (ADA) noticed several positive developments in recent times, and it seems that the trend is continuing. After its network upgrade, the token price rose impressively.
While the community is still awed by that, Grayscale has taken another huge step to push the token further towards the positive trend.
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The fund management company made this ground-breaking announcement on Twitter. From what the team tweeted, their main aim is to expose the clients to at least 70% of all the crypto in the market.
So, this is why they’ve concentrated on adding the bet and top crypto to their multi-billion portfolio. According to what Grayscale Finance Vice President Edward McGee said, the firm is excited about the addition.
He further stated that they want all their clients to access top digital currencies via regulated product offerings that they can relate with like others. Now, ADA makes up 4.26% of the Fund’s digital assets.
A Brief On Grayscale Quarterly Review
The asset management firm has always maintained a tradition of reviewing all the assets in its portfolio every quarter of the year.
Such action is to ensure that they present their clients with the best opportunities to invest their capital. In this quarterly review, the firm’s target is Cardano, and it sold off some firm’s components to purchase the crypto.
The community is also waiting for the next quarterly review, which will take place in September. The speculation is high as to which digital asset the firm will choose to add to its portfolio.
How Will The Announcement Affect Cardano (ADA)
In reaction to the announcement, Cardano’s founder Charles Hoskinson retweeted the announcement to show everyone in the crypto community.
This is indeed a groundbreaking achievement for the Cardano team and community. Given that Grayscale is a regulated and reliable digital asset management firm, it’s obvious that ADA will gain more credence in the crypto market.
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Now that the token appears side by side with Bitcoin and Ethereum, it will record more investments and following huge demand. The demand will cause the price to soar higher than others in growth.
The announcement of Grayscale adding Cardano to its portfolio is expected to shoot ADA to the moon. The price of ADA is rising gradually, thanks to the Grayscale.
Featured image from Coinrot, chart from TradingView.com