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By Bernice Nyambura - July 2, 2021
Cardano’s native currency ADA will now be available for investment to accredited investors on the new Grayscale Digital Large Cap Fund, which is seeking 70% exposure in digital assets.
“Welcome aboard #Cardano, we adjusted the portfolio of Grayscale Digital Large Fund to now Include $ADA.”
Grayscale wrote on Twitter that in order to make room for ADA, the firm had to make some changes to its portfolio by liquidating some parts of their other assets as part of its new Grayscale quarterly fund rebalance.
“we adjusted the portfolio of Grayscale Digital Large Cap Fund by selling certain amounts of the existing fund components in proportion to their respective weightings and using the cash proceeds to purchase #Cardano ($ADA).”
According to the Vice president of Finance at Grayscale, Edward McGee, the Grayscale Digital Large Cap Fund is a passive, rules-based strategy that seeks to provide exposure to 70% of the digital asset market.
“We are excited to welcome Cardano to our Digital Large Cap Fund’s portfolio as we work to ensure our diversified fund can safely hold assets that collectively comprise 70% of the entire digital asset market.”
McGee also added that Grayscale is committed to offering investors an opportunity to diversify their portfolios in digital assets.
“Digital currencies represent a unique opportunity for investors to diversify their portfolios, and at Grayscale, we are proud to provide our investors with access to leading digital currencies through regulated, familiar product offerings.”
The development marks a significant milestone for Cardano as it will expose the fifth-largest cryptocurrency by market cap to a wider range of both retail and institutional investors.
For interested investors, ADA investments through the fund can be made through cash or in-kind, which refers to contributions made from other digital assets. The fund is however still limited to accredited investors which for individuals means those who earn over $200,000 a year.
As earlier reported, Cardano is gearing up to launch smart contracts on its blockchain ecosystem, in a move that its parent company IOHK said will finally put Cardano at par with and even ahead of similar smart contracts platforms like Ethereum, Solana, and Polkadot.
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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.
The original article written by Bernice Nyambura and posted on ZyCrypto.com.
Article reposted on Markethive by Jeffrey Sloe
