- Grayscale has eliminated Polygon (MATIC) from its Digital Large Cap Fund.
- The firm specifically mentioned it sold MATIC to acquire AVAX and XRP.
- Grayscale also eliminated CRV from its DeFi Fund following a sell-off.
Prominent U.S.-based crypto asset manager Grayscale has eliminated the $8 billion valued crypto project Polygon (MATIC) from its Digital Large Cap Fund. The firm announced this development in a recent press statement disclosing its most recent rebalancing of funds.
In the report, Grayscale noted it modified its GDLC’s portfolio by selling specific quantities of the current fund components based on their respective weightings. Polygon (MATIC) was impacted in the sell-off round as it has been excluded from GDLC.
Grayscale’s action likely influenced the market value of MATIC as CoinMarketCap data shows the asset is down by over 14% in its seven-day cumulative performance.
Furthermore, Grayscale indicated that the cash generated from the sales was utilized to acquire new entrants into its Digital Large Cap Fund. The new additions are Avalanche (AVAX) and XRP.
As a result, GDLC’s Fund Components now include Bitcoin (BTC) with a weight of 69.15%, Ethereum (ETH) at 21.90%, Solana (SOL) at 3.65%, XRP at 2.54%, Cardano (ADA) at 1.62%, and Avalanche (AVAX) at 1.14%.
Meanwhile, Grayscale highlighted the foundation for which it reintroduced XRP to its GDLC Fund. It noted that the SEC’s complaint against XRP promoters, which contested that XRP was security in 2020, prompted crypto trading platforms to dissociate from the asset.
As a result, on January 4, 2021, Grayscale was compelled to remove XRP from its portfolio, selling the holdings to acquire additional tokens. However, in July 2023, a U.S. federal court ruled that XRP is not a security. Following this decision, leading U.S.-based trading outlets like Coinbase and Kraken relisted XRP, meeting the inclusion criteria of the DLCS Index.
Besides, MATIC was not the only asset Grayscale has sold off to make new acquisitions. It disclosed modifying its DeFi Fund portfolio by selling specific quantities of the current fund like Curve DAO Token (CRV).
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