XRP returns to Grayscale Digital Large Cap Fund

Grayscale, the largest operator of crypto-based OTC investment products, has reconsidered the weighting of its fund components following a review in the fourth quarter of 2023. Although some major altcoins and top DeFi assets have been removed from Grayscale’s basket, the return of XRP is the most anticipated development.

XRP and AVAX input, MATIC output: grayscale portfolio update

After the January 2024 rebalance, Grayscale began raising cash to purchase Avalanche (AVAX) and XRP, two of the top 10 altcoins by market capitalization. The latest structure of the Grayscale Digital Large Cap Fund (OTCQX: GDLC) has AVAX and XRP responsible for 1.14% and 2.54% of the portfolio value, respectively.

At the same time, Polygon (MATIC) was removed from GDLC. All MATIC funds backing products are sold by Grayscale. This decision is believed to be aimed at “bringing forward” the introduction of POL as the new core cryptocurrency of the Polygon 2.0 ecosystem.

More than 91% of the combined Bitcoin (BTC) and Ethereum (ETH) portfolio supports GDLC stock. Solana (SOL) and Cardano (ADA) cryptocurrencies account for 5.5% of his portfolio.

XRP was removed from the fund on January 4, 2021 following SEC allegations against Ripple Inc. and its principals. In mid-July 2023, the Southern District of New York ruled that XRP is not a security. The SEC’s appeal was dismissed in October 2023.

As previously reported on U.Today, Barry Silbert resigned from the board of Grayscale Investments in December 2023.

XRP price falls below 2-month low

In addition to revisiting the GDLC portfolio, Grayscale has adjusted the structure of the assets that back another popular product, the Grayscale DeFi Fund (OTCQB: DEFG).

Curve DAO’s token CRV has been removed from the portfolio. From January 2024, the fund will only work with Uniswap (UNI), Lido Finance (LDO), MakerDAO (MKR), Aave (AAVE), and Synthetix (SNX).

Despite XRP’s great achievement of returning to being one of the largest crypto funds available to retail customers, its price action is losing momentum.

On this day, the price fell below $0.55 on major spot exchanges. As such, the price of XRP erased all gains associated with the opening phase of the bull market, and its rate fell to its late October 2023 value.

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Vladislav Sopov