United States, July 2, 2021 /AlexaBlockchain/ – Grayscale Investments today announced that Proof-of-stake blockchain platform Cardano has been added to Its Digital Large Cap Fund’s Portfolio.
Grayscale Investments was founded in 2013 by Barry Silbert. It has now become the world’s largest cryptocurrency asset manager, with more than $30.4B in assets under management (AUM) as of July 1, 2021.
Grayscale Adds Cardano
Cardano is a smart contract platform created by Charles Hoskinson, a co-founder of Ethereum.
In accordance with the Fund’s construction criteria, Grayscale has adjusted the Fund’s portfolio by selling certain amounts of the existing Fund Components in proportion to their respective weightings and using the cash proceeds to purchase Cardano (ADA). This announcement follows the April 2021 news that Grayscale adjusted the Fund’s portfolio and purchased Chainlink (LINK).
Edward McGee, Vice President of Finance at Grayscale, said:
“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. Digital currencies represent a unique opportunity for investors to diversify their portfolios, and at Grayscale, we are proud to provide our investors with access to leading digital currencies through regulated, familiar product offerings.”
Grayscale is Highly Bullish on Cardano (ADA)
Grayscale is looking highly bullish on Cardano (ADA). The proof-of-stake platform which was not in the portfolio of Grayscale Digital Large Cap Fund, now accounts for 4.26% of the portfolio. This is the third largest digital assets in the portfolio now.
At the end of the day on July 1, 2021, Grayscale reported that the Fund portfolio comprised of 67.47% Bitcoin (BTC), 25.39% Ethereum (ETH), 4.26% Cardano (ADA), 1.03% Bitcoin Cash (BCH), 0.99% Litecoin (LTC), and 0.86% Chainlink (LINK) and each Share represented 0.00044919 Bitcoin (BTC), 0.00263059 Ethereum (ETH), 0.71069603 Cardano (ADA), 0.0046159 Bitcoin Cash (BCH), 0.00160755 Litecoin (LTC), and 0.01053027 Chainlink (LINK).
The Fund does not generate any income and regularly distributes Fund Components to pay for its ongoing expenses. Therefore, the amount of Fund Components represented by each Share gradually decreases over time.
Why is Grayscale Bullish on Cardano?
Investors are bullish on Cardano in anticipation of full smart contract implementation later this summer. More than $31 billion worth of ADA, the native token of Cardano, has been staked in anticipation of the major milestone in the network’s evolution — one that could set the stage for wider network adoption and a more considerable price appreciation for the cryptocurrency.
71.66% of ADA’s circulating supply, worth around $31.24 billion at today’s prices, have been staked across 2,677 active pools, according to data provider PoolTool. On Friday, the price of ADA was $1.36, having gained 1.29% in the past 24 hours, according to CoinMarketCap.
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Frequently Asked Questions
Cardano is a smart contract platform created by Charles Hoskinson, a co-founder of Ethereum. Informed by academic research, Cardano aims to improve upon the scalability, security, and efficiency of Ethereum by using a novel proof-of-stake (PoS) consensus mechanism called Ouroboros. ADA is the native token of the Cardano network that allows holders to engage in peer-to-peer transactions and stake as collateral to contribute to the network’s consensus mechanism.