Grayscale drops Cardano and Cosmos from its crypto funds in quarterly rebalancing

Prominent crypto asset management firm Grayscale has removed two high-profile digital assets, Cardano and Cosmos, from its multi-asset funds as part of its quarterly fund rebalancing.

In an April 4 press statement, the firm revealed that it removed Cardano from its Grayscale Digital Large Cap Fund (GDLC) and Cosmos’s ATOM token from the Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE).

Why Grayscale removed Cardano and Cosmos

According to the firm, the changes were prompted by CoinDesk’s recent rebalancing of its industry sector indices. Grayscale further explained that the components and weightings of each asset are determined according to each index’s methodology and are subject to change without notice.

Consequently, the Cardano held in GDLC was sold off, with the proceeds reinvested in other fund components based on their weightings. The fund’s current weightings include over 70% Bitcoin, 21.84% Ethereum, 4.52% Solana, and less than 3% in XRP and Avalanche.

Similarly, Cosmos was divested from GSCPxE, and the proceeds were utilized to acquire other fund components in proportion. As such, the fund has shifted in its weightings, now encompassing 58.4% of Solana, 14.56% Cardano, 12.25% Avalanche, 8.53% Polkadot, and 6.25% Polygon.

Meanwhile, no new tokens were added or removed from the DeFi Fund, which consists of 48% of Uniswap, 20.41% of MakerDAO, and 13.17% of liquid staking protocol Lido. The lending platform Aave holds 9.99% of the funds, and Synthetix holds 7.69%.

ADA, ATOM declines

ADA and ATOM have faced notable declines during the past day, corresponding with the broader crypto market struggles during the reporting period.

According to CryptoSlate’s data, the top two digital assets, Bitcoin and Ethereum, recorded losses of 0.61% and 3.66%, respectively.

Similarly, Cardano’s ADA and Cosmos’s ATOM fell by approximately 4% to $0.56 and $10.7, respectively, continuing a downward trend that has seen them shed double-digits during the past month.

Meanwhile, other large-cap assets like Solana and Avalanche’s AVAX saw bigger losses, plunging by more than 5% during the reporting period.

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