Grayscale Investments has rolled out an important update for the Digital Large Cap (DLC) Fund, its existing product. The organization has liquidated its stake in Cardano (ADA) for an exit in the current quarter. All the money that was left was reinvested in XRP and other similar assets owned by the fund.
Restoring the balance of assets requires selling Cardano merchandise. This sale of funds was onward gain fully channeled into an asset purchase. Prominent among these purchases was the acquisition of XRP, which significantly expanded Fundlend’s DLC holdings. Hence, as of the moment of writing this report, XRP is 1.73 % of the fund, or rounded up, it’s 16.7 million tokens. The DLC Management, LLC Fund stores $570,206,758.29 in its assets under management, according to the official website of Grayscale.
Grayscale boosts XRP, reduces ADA in DLC fund
Bitcoin is considered the first and leading cryptocurrency both in Grayscale’s DLC Fund and throughout the overall crypto market, comprising up to 70.96% of the entire market. Right after, Ethereum has a share of 21.85%. Ethereum’s challengers, such as Solana (SOL) and Avalanche (AVAX), sit slightly below, owning the following: 4.52% and 0.95%, respectively.
Grayscale’s move to change its portfolio was after a reasonable regulatory development period. Importantly, XRP will be included in the DLC undergoing legal actions against the SEC, which presented a legal challenge to its position as a security. As a result of this regulation, Grayscale has attracted speculation from participants in the cryptocurrency market about their plans for XRP.
Grayscale’s ETF moves fuel XRP speculation
Considering that Grayscale has listed XRP among other cryptocurrencies, this has sparked quite some critique among those in the crypto world. Rather than this, the spotlight has been on the possible Emergence of an XRP contractual exchange-traded fund (ETF). Another element that is driving this speculation is the new spot ETF launches from Grayscale, both for Bitcoin and Ethereum. In light of the fact that provisions to regulate XRP are now clear, it becomes an option to be sought out in related investment products.
GrayScale’s move to shift part of the portfolio portrays the firm’s responsiveness to the crypto space’s waves, tides, and regulations. The companies reported that they did not have any plans to add or tilt the DLC fund at the end of Q1 2024.
