Grayscale fund drops ADA and ATOM after quarterly rebalancing

Grayscale has removed Cardano’s ADAUSD token from its Grayscale Digital Large Cap Fund (GDLC) and Cosmos’ ATOMUSD token from its Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE).

The removal of the tokens was part of Grayscale’s quarterly fund rebalancing, the world’s largest crypto-focused asset manager announced in an April 4 X post. The proceeds generated from selling the tokens were used to buy existing fund components.

Following the removal of the ADA token, Grayscale’s large-cap fund now consists of 70.96% Bitcoin BTCUSD, 21.84% Ether ETHUSD, 4.52% Solana SOLUSD, 1.73% XRP XRPUSD and 0.95% Avalanche AVAXUSD.

As for Grayscale’s smart contract platform fund, it now holds 58.41% Solana, 14.56% Cardano, 12.25% Avalanche, 8.53% Polkadot DOTUSD and 6.25% Polygon MATICUSD tokens, after removing ATOM from the fund.

No new assets have been added or removed from Grayscale’s DeFi Fund, which currently holds 48.74% Uniswap UNIUSD, 20.41% Maker MKRUSD, 13.17% Lido LDOUSD, 9.99% Aave AAVEUSD and 7.69% Synthetix SNXUSD tokens.

Grayscale is the world’s largest crypto-focused asset manager. At the end of March, it announced a crypto investment fund prioritizing cryptocurrencies with staking rewards.

The new Grayscale Dynamic Income Fund is only available to clients with more than $1.1 million assets under management or a net worth of more than $2.2 million.

ADA and ATOM deliver negative returns year-to-date

Cardano’s ADA token fell 8.1% year-to-date (YTD) while ATOM fell over 3.3%, significantly underperforming both Bitcoin — the world’s first cryptocurrency — and Ether.

In comparison, Bitcoin is up 59% since the beginning of the year, while Ether has rallied over 40%, TradingView data shows.

ADA is down over 10% on the weekly chart, after falling below the $0.6 psychological mark on April 2, and is currently 81% away from its previous all-time high of $3.10 reached in September 2021.

ATOM is also down over 10% during the past week, trading at the $10.8 mark, 75% away from its record $44.7 reached in September 2021.