Avalanche Buckles as Grayscale Dumps Its AVAX Holdings
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The Grayscale Digital Large Cap Fund sold off its Avalanche earlier today, causing AVAX, the native token of the Avalanche network, to drop by about 2%.
In a Securities and Exchange Commission (SEC) report filed earlier today, Grayscale revealed a portfolio rebalancing, stating that it had “adjusted the fund’s portfolio by selling Avalanche (“AVAX”) and using the cash proceeds to purchase the existing fund components in proportion to their respective weightings.”
The company announced the adjustment in a post on Twitter and added Synthetix (SNX) to its DeFi Fund while removing Algorand from its Smart Contract Platform Ex-Ethereum Fund (ALGO).
According to CoinGecko, Avalanche’s token experienced a rise last month, rising 6.9% to $13.65. However, it was only worth $11.66 as of the time of writing, down 15% from a month earlier.
Avalanche Made Up Less Than 1% of Grayscale’s Fund
It’s important to remember that AVAX only made up a minor fraction of the Grayscale fund’s portfolio, which has $163 million in assets under management (AUM) at the moment. According to the fund’s most recent quarterly report, less than 1% of its assets as of September 30 were allocated to AVAX.
Currently, the fund is made up of 65% Bitcoin, 31% Ethereum, 2% ADA from the Cardano network, and 1% each in MATIC and SOL from the Polygon and Solana networks.
Since July, Grayscale has been monitoring the CoinDesk Large Cap Select Index. The index, which debuted in April, monitors the performance of “the largest and most liquid digital assets” as measured by market capitalization.
4/ Following this rebalancing, Avalanche $AVAX has been removed from the CoinDesk Large Cap Select Index and Grayscale Digital Large Cap Fund (OTCQX: $GDLC).
As of 1/5/2023, the fund’s holdings consist of $BTC, $ETH, $ADA, $SOL, and $MATIC.
Learn more: https://t.co/mZPzs12CB5 pic.twitter.com/FvKeb8aCwH— Grayscale (@Grayscale) January 6, 2023
The fund sold its holdings in Uniswap (UNI), Chainlink (LINK), Litecoin (LTC), Bitcoin Cash (BCH), and other cryptocurrencies at about the same time as Grayscale began utilizing the index.
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