• Grayscale announced a portfolio rebalancing for the fourth quarter of 2022, selling off a portion of its Digital Large Cap Fund, including Avalanche Network token AVAX.
• The rebalancing saw Grayscale purchase existing fund components in proportion to their respective weightings.
• Grayscale’s portfolio fund now includes 65% Bitcoin (BTC), 30% Ethereum (ETH), 1.86% Cardano (ADA), 1.39% Polygon (MATIC), and 1% Solana (SOL).
Grayscale recently released its quarterly update, announcing a portfolio rebalancing for the fourth quarter of 2022. As part of the rebalancing, Grayscale sold off a portion of its Digital Large Cap Fund, including Avalanche Network token AVAX. This has caused AVAX to slip by 2% in the past 24 hours.
The rebalancing saw Grayscale purchase existing fund components in proportion to their respective weightings. This included the CoinDesk Large Cap Select Index which tracks the market capitalization-loaded performance of “the largest and most liquid digital assets by market capitalization.” In its CoinDesk Smart Contract Platform Select Ex ETH Index and Grayscale Smart Contract Platform Ex-Ethereum Fund portfolio rebalancing, the company sold off Algorand native token ALGO.
In its CoinDesk DeFi Select Index methodology, Grayscale adjusted its DeFi Fund’s portfolio and purchased Synthetix (SNX) after selling some existing assets. As of now, Grayscale’s portfolio fund now includes 65% Bitcoin (BTC), 30% Ethereum (ETH), 1.86% Cardano (ADA), 1.39% Polygon (MATIC), and 1% Solana (SOL). Meanwhile, its DeFi Fund’s Fund Components include 65.05% Uniswap (UNI), 12.39% Aave (AAVE), 8.15% MakerDAO (MKR), 6.02% Synthetix (SNX), 4.58% Curve DAO Token (CRV), and 3.81% Compound (COMP).
Since July, Grayscale has been carefully monitoring the CoinDesk Large Cap Select Index. The index launched in April tracks the market capitalization-loaded performance of “the largest and most liquid digital assets by market capitalization.” Grayscale’s recent rebalancing is seen as a positive sign for the digital asset space, as it indicates the company’s commitment to diversifying its portfolio. The rebalancing also highlights Grayscale’s willingness to invest in high-quality digital assets, even if they are not part of the index.