Cardano Becomes Third-Largest Asset Held on Grayscale
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Grayscale Investments, the world’s biggest cryptocurrency investment company, recently announced the addition of Cardano (ADA) to its Digital Large Cap Fund (OTCQX: GDLC). The investment behemoth noted that this fund is “a passive, rules-based strategy that seeks to provide exposure to 70% of the digital asset market.”
The positive announcement came after a “quarterly review and rebalancing” of the fund. Grayscale explained that:
“[Per] the fund’s construction criteria, Grayscale has adjusted the fund’s portfolio by selling certain amounts of the existing fund components in proportion to their respective weightings and using the cash proceeds to purchase Cardano (ADA).”
At the end of the day of the announcement, July 1, the Digital Large Cap Fund’s constituents included 67.47% Bitcoin, 25.39% Ethereum, 4.26% Cardano, 1.03% Bitcoin Cash, 0.99% Lite, and 0.86% Chainlink.
During the quarterly constituent evaluation update in April, the company replaced Ripple with Chainlink on its Digital Large Cap Fund due to the ongoing case Ripple has with the SEC.
At press time, Grayscale Investments boasts $30 billion in assets under management. The company currently offers 14 investment products, with the largest being the Bitcoin Trust (GBTC), with over $22 Billion in assets. Meanwhile, the Digital Large Cap Fund has about $357 million in AUM. i
Key Cardano Levels to Watch — July 5
Cardano traded on a very positive momentum over the weekend, recording a two-week high at $1.4952 as the broader market sentiment turned bullish. However, the fifth-largest cryptocurrency has suffered a sharp correction in the early hours on Monday.
Cardano now trades near the $1.4000 critical support. That said, we expect the cryptocurrency to post a rebound from this level, given the confluence of technical barriers on this level (including our pivot zone and ascending trendline).
Meanwhile, our resistance levels are $1.4450, $1.5000, and $1.5467, and our support levels are $1.4000, $1.3000, and $1.2000.
Total Market Capitalization: $1.43 trillion
Cardano Market Capitalization: $45 billion
Cardano Dominance: 3.14%
Market Rank: #5
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