Grayscale Investments, the world's largest digital currency asset manager, has announced a 2023 first-quarter rebalancing of its funds.
Cardano (ADA) Strengthens Presence in Grayscale's Smart Contract Platform Fund
The Smart Contract Platform has revealed a strengthened presence for Cardano (ADA) in the Ex-Ethereum Fund (GSCPxE Fund).
The updated fund component weights place Cardano at 28.13%, an increase from the previous quarter.
The company's GSCPxE Fund offers investors exposure to smart contract platforms beyond Ethereum, highlighting the growing importance of Cardano in the rapidly expanding smart contract ecosystem.
However, on another fund, the Grayscale Digital Large Cap Fund, Cardano witnessed a slight decrease in its share, from 1.86% in Q4 2022 to 1.69% in Q1 2023.
Despite the decline, the ADA token remains among the most important digital assets in the fund basket, reflecting its importance in the broader cryptocurrency market. Because it has increased its share in the fund (GSCPxE) where its direct competitors are located.
Grayscale Digital Large Cap Fund's basket also includes other major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Polygon (MATIC) and Solana (SOL).
Cardano's innovative proof-of-stake consensus mechanism, sustainability, scalability and focus on security have made it a strong competitor in the smart contract platform space.
Cardano is a proof-of-stake blockchain platform that says its purpose is to enable "changers, innovators and visionaries" to generate positive global change.
Many industry experts see it as a potential competitor to Ethereum.
At the time of this writing, Cardano (ADA) was trading at $0.377.
*Not investment advice.