Grayscale, a digital asset management firm, announced the rebalancing of its cryptocurrency funds for the fourth quarter of 2024.
The company detailed that removed its holdings in Avalanche (AVAX) from its Digital Large Cap fund to increase its exposure to bitcoin (BTC) and ether (ETH)the native currency of the Ethereum network. Additionally, he allocated a small percentage to cardano (ADA).
The change in strategy suggests that Grayscale could be preparing for the arrival of a crypto winter, a term used to describe a period of prolonged price declines.
With these adjustments, BTC represents 73.52% of the fund and ETH 16%, reflecting a more conservative and less speculative approach on the part of the company. The rest is distributed as follows: 5.05% in XRP, 3.83% in solana (SOL) and 1.44% in cardano.
It is important to note that AVAX has been one of the lowest performing cryptocurrencies in the last 12 months, experiencing a 2% drop in its price. At the time of publication of this note, Its price is $36, 75% below its all-time high (ATH) of $146 reached in November 2021..
For its part, ADA is one of the cryptocurrencies that has aroused the interest of investors in this bullish cycle, as reported by CriptoNoticias. Its price is $0.97, which represents an increase of 77% in the last year.
Grayscale also detailed that there was a rebalancing of the Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE), which tracks smart contract platforms, with the exception of Ethereum. The firm’s specialists added sui (SUI) to this fund, reducing exposure to NEAR Protocol (NEAR) and polkadot (DOT).
As of now, 55.22% of that portfolio corresponds to SOL, 20.82% to cardano, 7.83% to SUI, 3.85% to NEAR and 2.66% to DOT.
Regarding the artificial intelligence (AI) fund, Grayscale established a more equitable division between different projects. NEAR occupies a weighting close to 30%, followed by render (RENDER) with 20%, bittensor (TAO) with 19%, filecoin (FIL) with 17% and The Graph (GRT) with 10.45%.
On the other hand, synthetix (SNX) has been replaced by curve (CRV) as the smallest component within the Grayscale Decentralized Finance Fund, which remains heavily dominated by uniswap (UNI) and Aave (AAVE), making up 47.88% and 27.87%, respectively.
It is relevant to highlight that Grayscale rebalances the composition of its funds on a quarterly basisbased on fluctuations in the index CoinDesk Large Cap Select.