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Grayscale Investments, a digital asset manager, has raised its Cardano ($ADA) allocation in its smart contract fund offering investors exposure to blockchain networks(that excludes Ethereum).
Dan Gambardello, the founder of CryptoCapitalVenture, first pointed out that Grayscale has increased its allocation to Cardano’s ADA on the Grayscale Smart Contract Platform ex Ethereum Fund (GSCPxE) to 32.33% per share, while the each share holds 4.34 ADA.
The fund’s exposure to other assets have experienced a decrease with the increased allocation to ADA. Solana, the second-largest holding of the fund, is down from 23.3% at launch to 21.3% allocation.
The allocation of Polkadot ($DOT), that’s just behind Solana, is down from 15.4% at launch to 15.09% currently. Then comes Avalanche ($AVAX) down from 18.4% at the time of fund launch in March to 10.4% allocation.
Michael Sonneshein, the CEO of Grayscale, says that the GSCPxE fund allows investors to stake on different developing platforms rather than staking on one that’s proving to be the only space for dApps and decentralized applications. Polygon ($MATIC), Cosmos ($ATOM), Algorand ($ALGO) and Stellar ($XLM), are among other holdings in the fund.
Market Cap is the parameter on which the holdings of the funds are weighted. Grayscale for adding a new ADA element to it, rebalanced its digital Large Cap Fund (GDLC), last year. This move led to investors getting more exposure to the digital asset after it increased by more than 1,000% in a year’s time.
ALSO READ – Grayscale Legal Team Strengthens As Top Lawyer Under Obama Administration Verrilli Joins Them
Large investors managing assets worth approx. $200 billion are distancing away from the biggest altcoin, Ethereum and are rather betting on other popular altcoins, particularly three: $XRP, Polkadot ($DOT), and Cardano ($ADA), as per the reports from CryptoGlobe.
Meanwhile, the crypto experts have recently predicted that the ADA price will even cross the mark of $1 by the end of this month, once the Vasil hard fork is implemented, which is expected to enhance the network.
The Vasil hard fork is a highly-anticipated upgrade that contains four Cardano Improvement Proposals (CIPs). As the hard fork approaches, ADA has surpassed several other assets amidst the downturn in the crypto market after Terra’s collapse.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
