Grayscale Boosts Bitcoin and Ethereum Holdings to 90% in Large Cap Fund Rebalance

Grayscale Investments has significantly increased its Bitcoin and Ethereum allocations within its Digital Large Cap Fund, now comprising 73.52% Bitcoin and 16.16% Ethereum, totaling a 90% stake. This adjustment was made during the fund’s fourth-quarter 2024 rebalancing, reflecting strategic shifts in the cryptocurrency market.

In the latest rebalancing, Grayscale removed Avalanche from the portfolio and introduced Cardano, which now holds a 1.44% allocation. Meanwhile, XRP and Solana maintain their positions with 5.05% and 3.83% allocations, respectively. The decision to add Cardano follows its impressive 75% price increase over the past year, contrasting with Avalanche’s weaker performance during the same period.

The rebalancing process adheres to the CoinDesk Large Cap Select Index methodology and has also impacted several other Grayscale products. For instance, the Decentralized AI Fund has added Livepeer with a 2.83% weighting, while the Decentralized Finance Fund has introduced Curve at 6.71%, replacing Synthetix. Additionally, the Smart Contract Platform Ex-Ethereum Fund has incorporated Sui with a 7.93% allocation, maintaining Solana and Cardano as dominant holdings that collectively account for over 75% of the portfolio.

Grayscale is actively seeking regulatory approval to convert its large cap fund and other products into exchange-traded funds (ETFs). This move comes amid expectations of more crypto-friendly policies following the resignation of Gary Gensler as SEC Chair, with Paul Atkins poised to take over the role. The leadership change has sparked optimism for the approval of new ETFs, including those for Solana, XRP, Litecoin, and HBAR.

If regulatory acceptance materializes, Grayscale’s efforts could lead to the approval of its large cap fund as an ETF, potentially broadening access to these cryptocurrency investments for a wider range of investors.