Grayscale Investments, a prominent player in the cryptocurrency space, has made waves by making substantial changes to its flagship Digital Large Cap (DLC) Fund. In a surprising move, the company decided to exit its investments in Cardano (ADA) and instead focused on acquiring XRP while bolstering its existing asset portfolio. This strategic restructuring has garnered attention and speculation within the cryptocurrency community.
The recent press release detailing this strategic reshuffle also had an impact on Grayscale Investment’s Smart Contract Platform Ex-Ethereum Fund and DeFi Fund. However, it was the DLC Fund that saw the most significant transformation, marked by the complete removal of Cardano from its holdings.
XRP Makes a Comeback in Grayscale Investment’s Portfolio
Following the restructuring, XRP has secured a 1.73% stake within the DLC Fund. With the fund’s total value at $570 million, this means that Grayscale now holds around 16.7 million XRP tokens. This move marks XRP’s return into Grayscale’s portfolio after being removed due to the SEC’s lawsuit.
Bitcoin Remains the Dominant Player
Despite the addition of XRP, Bitcoin remains firmly in control of the DLC Fund, comprising a significant 70.96% of the total assets. Ethereum trails behind at a distant second with 21.85%, followed by Solana in third place with 4.52%. Avalanche holds the smallest share at 0.95%. Interestingly, there were no new assets introduced to the fund during the first quarter of 2024. This stability suggests confidence in XRP’s future performance.
Grayscale’s choice to bring XRP back into its portfolio indicates a possible belief in the digital asset’s future prospects. This decision hints that clearer regulations regarding XRP may have played a role. XRP is now standing shoulder to shoulder with well-established cryptocurrencies such as Bitcoin and Ethereum in Grayscale Investment’s portfolio.
Could an XRP ETF Be on the Horizon?
Grayscale’s changes to the DLC Fund have sparked renewed speculation about the potential for an XRP spot ETF. With Grayscale’s recent activities in Bitcoin spot ETFs and the ongoing work on an Ethereum ETF, many in the market see a similar path for XRP, especially given its regulatory situation. Investors are keenly watching Grayscale’s actions, anticipating a possible announcement about an XRP ETF in the near future.
Also See: XRP Price Back! Analysts Eye $1 Amidst Market Reversal