Grayscale Reduced Its Holdings In Matic Funds While Increasing Its Holdings In Avax And Xrp Funds.

The asset management company has balanced three crypto funds. Grayscale, a crypto asset management company, announced changes to its portfolio, stating that it has reduced its holdings in MATIC (Polygon) funds while simultaneously increasing its holdings in AVAX (Avalanche) and XRP funds.

Grayscale is rebalancing the weights of its Digital Large Cap Fund, DeFi Fund, and Smart Contract Platform Ex-Ethereum Fund by making changes to their compositions.

According to an announcement made on January 5th, Grayscale's Digital Large Cap Fund (GDLC), DeFi Fund (DEFG), and Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund) are affected.

In the revised composition of the Digital Large Cap Fund, Bitcoin (BTC) gains a weight of 69.15%, while Ether (ETH) is allocated 21.90%, Solana (SOL) 3.65%, XRP 2.54%, Cardano (ADA) 1.62%, and AVAX constitutes 1.14% of the fund. With these changes, MATIC has been removed from GDLC.

Changes in Grayscale's DeFi Fund include removing Curve DAO (CRV) token from the portfolio. The new basket is weighted with Uniswap (UNI) at 41.11%, Lido (LDO) at 23.90%, MakerDAO (MKR) at 13.39%, Aave (AAVE) at 12.63%, and Synthetix (SNX) at 8.97%.

Although removed from one fund, MATIC still remains in the GSCPxE Fund, and no tokens have been added or removed from this fund. The updated composition shows SOL with a 44.54% share, ADA with 19.77%, AVAX with 13.89%, Polkadot (DOT) with 9.75%, MATIC with 8.25%, and Cosmos (ATOM) with 3.80%.

Fund managers typically aim to optimize the fund's performance based on current market conditions, risk assessments, and investment objectives by conducting this process at three-month intervals. Funds aiming to provide exposure to decentralized financial markets, like the DeFi Fund, have been adversely affected by the crypto winter. As of the time of writing, its shares were trading at $22, experiencing a 9.28% decline within the last 24 hours.

Grayscale, a crypto asset manager, is one of the companies seeking regulatory approval for a spot Bitcoin exchange-traded fund (ETF) in the United States. In line with this goal, there are plans to convert the over-the-counter Grayscale Bitcoin Trust into a listed BTC ETF. A decision from the U.S. Securities and Exchange Commission (SEC) is expected on January 10th.

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