Saturday, May 30, 2020

Grayscale Maintains Bullish Stance on BTC, Reduces DLC Fund for XRP and Ethereum

Grayscale investments, a major subsidiary of Digital currency group and a crypto asset management firm has released an updated review of its previously allocated weightings to the top cryptocurrencies on the market. While there are no surprises, there are a few adjustments that could raise eyebrows.

XRP, Ethereum Lose Weights

Grayscale investment is one of the principal subsidiaries of famous venture capital company Digital Currency Group, based in the New York.  The company’s Digital Large Cap Fund according to its official website is a fund that “seeks to hold large cap digital assets that collectively comprise 70% of the entire digital asset market.”

Bitcoin has had a productive start to the New Year, and Grayscale’s decision to increase its fund’s exposure to the major cryptocurrency is no coincidence.

Two weeks ago, Bitcoin’s market cap and price valuation suddenly shot up above $5000 due to a mysterious transaction on the blockchain of 20,000 BTC. Its price has since dropped slightly, but the future looks bright for BTC, as positive developments by Nasdaq and Bakkt is set to bring more institutional investments. Due to the recent cryptocurrency rally, Grayscale Investments now has over $1 billion in assets under management (AUM) for the first time in months.

Ripple’s XRP and Ethereum (ETH) however saw a drop in Grayscale’s fund exposure from previous set weights at December last year. The new review now sees XRP lose the most from a previously weighted 14.7 per cent to 11.9 per cent. Bitcoin Cash (BCH) however gained a slight percentage of 0.1 compared to Ethereum’s reduction of 0.3 per cent.

3/ Although no new assets qualified for inclusion following DLC’S Quarterly Review (3/31/19), the below table highlights how DLC’s weightings have changed from December 31, 2018 to March 31, 2019: $BTC $ETH $XRP $BCH $LTC

LTC, BTC Gains Weights

Bitcoin and Litecoin both gained weights with LTC seeing an increased fund exposure from 1.8 per cent to 3.3 per cent. Grayscale Investment decision concerning Litecoin couldn’t have come at a better, however, just barely a week after Mike Novogratz threw a shade at the cryptocurrency. The Galaxy Digital founder had advised enthusiasts to sell their Litecoins for Bitcoin (BTC), but the faithfuls are still sticking it out, as the coin aims to prove it is more than a ‘test net’ for Bitcoin.

The Stellar Lumens (XLM) Trust

Earlier in the year, Grayscale launched the Stellar Lumen trust, the first single asset investment product that gives exposure to Lumen, the crypto asset of the stellar blockchain.

Latest News

J.P. Morgan—Bitcoin’s ‘Biggest Enemy’—Suddenly Appears To Be Going All In On Crypto

J.P. Morgan's turbulent relationship with bitcoin appears to be rapidly softening... Read the full story on Forbes

$10 Million Burned on BitMEX Shorts as Bitcoin Surges to $9,700

Just hours after Ethereum rocketed higher, so too has Bitcoin. The leading cryptocurrency recently reached $9,750, the highest price BTC has traded at in over...