Grayscale stands as a digital asset firm, and has recently come to adjust the weighting of certain cryptocurrencies in its Digital Large-Cap investment fund. The ones finding most benefit from this shift is Ethereum and Bitcoin, having their weighting increased, but this comes at the detriment of other altcoins.
1/ Following the Quarterly Review (6/30/20), we are pleased to announce the updated weightings for Grayscale Digital Large Cap Fund (“DLC Fund”)
— Grayscale (@GrayscaleInvest) July 6, 2020
Pro ETH and BTC, Going Down On Everything Else
On the 12th of July, 2020, Grayscale announced through a twitter thread that it had shifted the composition of its DLC fund as it moved into Q2 2020. The announcement details that the Bitcoin percentages had increased to 81.5%, as opposed to the previous 81%. Ethereum’s weighting experienced a more pronounced weighting shift, however, moving up to 11.7% as opposed to the previous 9.6%
As one would imagine, the increase in some coins would lead to the inevitable decrease of others, with three significant altcoins having their weight reduced during this same time frame in the fund. Bitcoin cash dropped to 2%, having been 2.8%, with XRP dropping down to 3.6% from its previous 5%. Litecoin saw the lowest drop in the shift, going down to 1.2% from the 1.6%
Single-Asset Funds Favouring Bitcoin and Ethereum
As it stands now, the single-asset investment funds for both Ethereum and bitcoin have been the largest ones under the management of the firm. For Bitcoin, there’s a total of $3.5 billion under management, with $410 million managed for Ethereum. To put things in perspective, if you count the value of all the single-asset funds for Litecoin, Bitcoin Cash and XRP together, the aggregate will only be worth $12 million.
Grayscale stands as one of the largest crypto-investment firms out there and has been signaling that they’re quite eager for Bitcoin through 2020’s entirety. Before the halving event that really let Bitcoin recover from the crypto market crash, Grayscale had been purchasing approximately half of the entire mined supply of Bitcoin. As the halving occurred, it seemed that the investment firm hadn’t backed down. Instead, it’s estimated that it’s acquiring 153% of all the Bitcoin mined in that period. That’s a bullish sentiment, regardless of how you look at it.
Overall Dominance Shift
Ethereum wasn’t spared of Grayscale’s appetites, as well. In early April, it was shown that the crypto investment firm was buying the equivalent of half of all the mined ETH in 2020, and has eventually come to be the owner of 1.1% of the entire circulating supply of Bitcoin.
It’s suspected that this new re-evaluation of the DLC fund of Grayscale, is as a direct reaction to the current market condition. Ethereum, in particular, saw a global market dominance increase of over 9.8% from its previous 8.17%. This mirror’s Grayscale’s shift, and this could be seen in all the coins that had their weights shifted downward. The only exception to this is Bitcoin, which had fallen down to 62.46% compared to its previous 65.78%.