Crypto assets manager Grayscale adds Cardano (ADA) to its Digital Large Cap Fund with Cardano having the third-highest allocation.
Grayscale, the world’s largest crypto asset manager, has announced the addition of another altcoin to its popular Digital Large Cap Fund ($GDLC).
After Bitcoin (67.47 percent) and Ether (25.39%), Cardano (ADA) was included in the fund with the third-highest allocation of 4.36% .
The Grayscale Digital Large Cap Funds are a passive investment solution that covers 70% of the digital asset market.
Every quarter, the fund’s composition is examined, and any necessary adjustments are made by selling existing digital assets in proportion to their fund allocation.
The funds’ cash proceeds are then utilized to purchase a new digital asset. In September, the next quarterly review will take held.
Grayscale’s Vice President of Finance, Edward McGee, stated,
“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,”
While BTC and ETH remain constant in the $GDLC fund, additional cryptocurrencies continue to gain a position in the fund based on their market demand.
Cardano (ADA) is preparing to launch the final phase of the Alonzo Smart Contract hard fork, which has been branded an Ethereum killer due to similar network features.
Cardano holders have staked 43.3 billion ADA, which is valued at $31 billion and constitutes 71 percent of the circulation supply.
The Alonzo project, which adds smart contract capabilities to the network, is viewed as the most significant update.
The improvement is expected to help Cardano compete with Ethereum, Solana, and Polkadot.
The Alonzo upgrade would be carried out in three phases, with Alonzo Blue being the first to go live on May 27. Alonzo White and Alonzo Purple would follow soon after.
The platform’s initial smart contracts would be released in August.