Grayscale Rebalances its Digital Large Cap Fund To Hold Over 16M XRP

Grayscale, one of the world’s largest crypto asset managers by total assets under management (AUM) rebalanced its Digital Large Cap Fund at the end of 2024 Q1. This action led to the removal of Cardano (ADA) from the fund while the company maintained support for XRP, triggering bullish speculations from XRP proponents.  

The Stamford-headquartered company announced the routine development on Thursday, revealing that other of its multi-asset funds, including the Grayscale DeFi Fund (DEFG) and Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE) were also rebalanced. 

Following this rebalancing, XRP is once again among the top crypto assets held in the Grayscale Digital Large Cap Fund (GDLC). Other supported cryptocurrencies are Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and Avalanche (AVAX). 

Recall that Grayscale removed XRP from the GDLC fund after the United States Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, claiming that XRP is a security. Subsequently, the leading asset manager added back XRP after rebalancing its investment funds in the last quarter of 2023. The move came after a federal judge ruled on XRP as a non-security in July 2023. 

Grayscale Digital Large Cap Fund holds over 16 million XRP

At the time of writing, XRP accounts for 1.74% of the total assets under management in the GDLC fund. Also, data on the Grayscale website shows that the total value of assets under management in the GDLC fund is approximately $570,206,758 ($570.2M). 

Thus, XRP’s 1.74% fund’s weight is equivalent to $9,921,597 ($9.92M). This further indicates that Grayscale holds about 16,002,576 (~16M) XRP tokens given the asset’s exchange rate of $0.62 at press time. 

While BTC held in the GDLC fund makes up 71.63% of the fund’s total valuation, ETH, SOL and AVAX holdings are equivalent to 21.51%, 4.20% and 0.92%, respectively. From the foregoing, XRP is now the third most-held cryptocurrency in the Grayscale digital large cap fund. 

Bullish speculations on XRP rises

Grayscale’s renewed support for XRP has aroused bullish speculations from different XRP holders and crypto analysts. Among such speculations from proponents of the 7th-largest cryptocurrency by market cap is that Grayscale may launch an XRP exchange-traded fund. 

Despite being among the issuers of the 11 spot BTC ETFs approved by the U.S. SEC in early January, the leading asset manager has made no official communication regarding an XRP ETF. That notwithstanding, Valkyrie co-founder and other experts submitted that an XRP ETF is highly possible.  

Likewise, one popular crypto analyst predicted that the XRP Ledger native token would reach at least $4 or $5.5 by the end of 2024. While these and many speculations continue to float, XRP is trading at $0.61 at press time, up over 4% in the past 24 hours and about 1% in the last seven days. 

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