Grayscale invests in XRP again and now holds 16.7M XRP after exiting Cardano

Grayscale Investments, the foremost crypto asset manager, has made adjustments to its Digital Large Cap (DLC) fund by liquidating Cardano (ADA) and reallocating funds to buy XRP and other existing assets.

Grayscale officially announced the move via a press release detailing the fund’s quarterly rebalancing. The rebalancing involved several of the company’s investment products, including Digital Large Cap Fund, Smart Contract Platform Ex-Ethereum Fund and DeFi Fund.

Grayscale's New XRP Holdings

According to the report, Grayscale modified its DLC portfolio by liquidating its Cardano holdings. As a result, the company puts the cash from the sale back into the fund to purchase other assets.

After this rebalancing, XRP accounts for 1.73% of Grayscale’s DLC fund. It is worth noting that according to records on its official website, Grayscale’s DLC fund manages $570,206,758.29 in assets.

Considering that 1.73% of XRP in the fund is equivalent to $9,864,576, this means that Grayscale holds approximately 16.7 million XRP tokens.

As expected, Bitcoin accounts for the largest share of Grayscale’s DLC fund, accounting for 70.96%. Next is Ethereum (ETH), accounting for 21.85%, and Solana (SOL) accounts for 4.52%.

Meanwhile, Avalanche (AVAX) has the least composition, accounting for just 0.95%. Additionally, as of the end of the first quarter of 2024, the company did not report any new token additions to its DLC fund.

XRP re-enters the GDLC Fund

Notably, XRP re-entered Grayscale’s DLC fund following a rebalancing in the last quarter of 2023. The move comes five months after XRP scored a victory in its legal dispute with the U.S. Securities and Exchange Commission (SEC).

Grayscale previously held XRP in its DLC Fund before the SEC challenged its classification as a security. This regulatory challenge forced Grayscale to distance itself from XRP.

Now that XRP is visibly present in the fund, crypto community members have speculated on its potential impact on XRP’s market cap, especially considering the company holds over 16 million XRP.

Notably, the main goal of the Grayscale Digital Large Cap Fund is to allow investors to participate in some of the most important crypto assets.

XRP’s return to the GDLC Fund has sparked speculation about Grayscale’s potential launch of an XRP spot exchange-traded fund (ETF).

The speculation stems from Grayscale’s recent launch of a Bitcoin spot ETF and the ongoing development of an Ethereum ETF. Market participants believe that XRP is the next logical choice due to its clear regulatory status.

Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may contain the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to perform thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.