Grayscale drops Cardano and Cosmos from its crypto funds in quarterly rebalancing News ▸ Grayscale ▸ Cardano · Cosmos ▸ Investments
Grayscale drops Cardano and Cosmos from its crypto funds in quarterly rebalancing
Following the news, ADA and ATOM have faced considerable price struggles during the past day,
2 min read
Updated: Apr. 5, 2024 at 4:35 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Prominent crypto asset management firm Grayscale has removed two high-profile digital assets, Cardano and Cosmos, from its multi-asset funds as part of its quarterly fund rebalancing.
In an April 4 press statement, the firm revealed that it removed Cardano from its Grayscale Digital Large Cap Fund (GDLC) and Cosmos’s ATOM token from the Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE).
Why Grayscale removed Cardano and Cosmos
According to the firm, the changes were prompted by CoinDesk’s recent rebalancing of its industry sector indices. Grayscale further explained that the components and weightings of each asset are determined according to each index’s methodology and are subject to change without notice.
Consequently, the Cardano held in GDLC was sold off, with the proceeds reinvested in other fund components based on their weightings. The fund’s current weightings include over 70% Bitcoin, 21.84% Ethereum, 4.52% Solana, and less than 3% in XRP and Avalanche.
Similarly, Cosmos was divested from GSCPxE, and the proceeds were utilized to acquire other fund components in proportion. As such, the fund has shifted in its weightings, now encompassing 58.4% of Solana, 14.56% Cardano, 12.25% Avalanche, 8.53% Polkadot, and 6.25% Polygon.
Meanwhile, no new tokens were added or removed from the DeFi Fund, which consists of 48% of Uniswap, 20.41% of MakerDAO, and 13.17% of liquid staking protocol Lido. The lending platform Aave holds 9.99% of the funds, and Synthetix holds 7.69%.
ADA, ATOM declines
ADA and ATOM have faced notable declines during the past day, corresponding with the broader crypto market struggles during the reporting period.
According to CryptoSlate’s data, the top two digital assets, Bitcoin and Ethereum, recorded losses of 0.61% and 3.66%, respectively.
Similarly, Cardano’s ADA and Cosmos’s ATOM fell by approximately 4% to $0.56 and $10.7, respectively, continuing a downward trend that has seen them shed double-digits during the past month.
Meanwhile, other large-cap assets like Solana and Avalanche’s AVAX saw bigger losses, plunging by more than 5% during the reporting period.
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Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source.
Cosmos
$6.89206
Cosmos is a blockchain ecosystem where thousands of dApps interoperate to create the foundation for a new token economy.
Bitcoin
$97,288.51
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,463.45
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Solana
$193.866
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
Avalanche
$39.7220
Avalanche is an umbrella platform for launching decentralized finance (DeFi) applications, financial assets, trading and other services.
Uniswap
$13.8133
Since its inception, the Uniswap Protocol (“Uniswap”) has served as a trustless and highly decentralized financial infrastructure.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
