Grayscale Digital Large Cap Fund Adds XRP, Drops MATIC in Rebalancing

Grayscale, xrp and matic logos

Grayscale, the largest digital asset manager, has added XRP, the native token of the Ripple network, to its Digital Large Cap Fund, while removing MATIC, the token of the Polygon network, following a quarterly review. The fund’s composition now reflects the upper 70% of the digital currency market by market capitalization.

A Quarterly Review

Grayscale, the largest digital asset manager, has added XRP, the native token of the Ripple network, to its Digital Large Cap Fund, while removing MATIC, the token of the Polygon network, following a quarterly review. The fund’s composition now reflects the upper 70% of the digital currency market by market capitalization.

According to a press release on Jan. 5, the fund’s portfolio as of Jan. 4, 2024, consists of 69.15% Bitcoin (BTC), 21.90% Ethereum (ETH), 3.65% Solana (SOL), 2.54% XRP, 1.62% Cardano (ADA), and 1.14% Avalanche (AVAX). The fund’s assets under management as of Jan. 3, 2024, were $370.7 million.

Rebalancing Based On CoinDesk Large Cap Select Index (DLCS)

The fund’s rebalancing is based on the CoinDesk Large Cap Select Index (DLCS), which measures the performance of some of the largest and most liquid digital assets that meet certain trading and custody requirements. The index is rebalanced quarterly by CoinDesk Indices, Inc., the index provider.

The Performance of XRP

XRP, which was added to the fund, is the fourth-largest digital asset by market capitalization, with a value of $30 billion as of Jan. 6, 2024. XRP is used by Ripple, a company that provides cross-border payment solutions for banks and other financial institutions. XRP has gained 11.8% in the past week, but is still down 66.7% from its all-time high of $3.84 in January 2018.

XRP chart

MATIC’s Performance

MATIC, which was removed from the fund, is the 17th-largest digital asset by market capitalization, with a value of $7.9 billion as of Jan. 6, 2024. MATIC is used by Polygon, a platform that aims to scale and enhance the Ethereum network by providing faster and cheaper transactions. MATIC has lost 8.7% in the past week, but is still up 5,900% from its price of $0.017 in January 2020.

MATIC chart

Grayscale, a subsidiary of Digital Currency Group, offers various products that enable investors to gain exposure to digital assets through a familiar investment vehicle. The firm’s flagship product, the Grayscale Bitcoin Trust (GBTC), is the largest publicly traded bitcoin fund in the world, with $21.8 billion in assets under management as of Jan. 3, 2024.

Grayscale also filed an application with the U.S. Securities and Exchange Commission (SEC) in October 2021 to launch a spot bitcoin exchange-traded fund (ETF), which would track the price of bitcoin directly rather than through futures contracts. The SEC has not yet approved any spot bitcoin ETFs, but has allowed several ETFs tied to bitcoin futures to start trading in 2021.

Author: Grace

Grace likes gardening. She holds some BTC and ETH.