Grayscale Fund Drops ADA and ATOM in Quarterly Rebalancing

Grayscale, the largest crypto-focused asset manager, has made some changes to its investment funds. It has removed Cardano’s ADA token from its Grayscale Digital Large Cap Fund and Cosmos’ ATOM token from its Grayscale Smart Contract Platform Ex-Ethereum Fund. This was part of Grayscale’s quarterly rebalancing, where it sells tokens to buy existing fund components.

As a result of the changes, Grayscale’s large-cap fund now consists primarily of Bitcoin, Ethereum, Solana, XRP, and Avalanche tokens. The smart contract platform fund now holds Solana, Cardano, Avalanche, Polkadot, and Polygon tokens, after removing ATOM. There have been no changes to Grayscale’s DeFi Fund, which holds Uniswap, MakerDAO, Lido, Aave, and Synthetix tokens.

Grayscale recently introduced a new investment fund called the Grayscale Dynamic Income Fund. This fund is only available to clients with significant assets under management or a high net worth. The fund is designed to prioritize cryptocurrencies with staking rewards.

Both ADA and ATOM tokens have experienced negative returns this year. ADA has fallen 8.1% year-to-date, while ATOM has fallen over 3.3%. In comparison, Bitcoin is up 59% and Ether is up over 40% since the beginning of the year.

ADA has also seen a decline on the weekly chart, falling below the $0.6 mark and currently being 81% away from its previous all-time high. ATOM has also dropped over 10% in the past week, trading at around $10.8 and 75% away from its record high.

Grayscale’s rebalancing reflects changes in the crypto market and its focus on different cryptocurrencies. Investors will need to keep an eye on these developments as they can impact the performance of the funds.