The Avalanche network’s AVAX token was down around 2% Friday morning after the Grayscale Digital Large Cap Fund dumped its holdings.
Grayscale announced the portfolio rebalancing during a Securities and Exchange Commission (SEC) report on Friday morning, saying 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 noticed the change in a thread. Twitter, stating that it had also rebalanced its DeFi Fund in order to add Synthetix to (SNX), and Smart Contract Platform Exethereum Fund to eliminate Algorand to (ALGO).
Avalanche witnessed its first rally last month, with a 6.9% increase to $13.65, according the Avalanche website. CoinGecko. It traded at $11.56 on Friday morning, down 15% from one month ago.
It’s worth noting that AVAX made up only a small portion of the Grayscale fund’s portfolio, which currently has $163 million in assets under management As of September 30, AVAX made up less than 1% of the fund’s assets, according to its last quarterly report.
The fund now includes 65% Bitcoin, 31% Ethereum2% Cardano network’s ADA token, and 1% each of the Polygon network’s MATIC and the Solana network’s SOL.
Grayscale has been following the CoinDesk Large Cap Select Index from July. The index, which launched in April, tracks the market capitalization-weighted performance of “the largest and most liquid digital assets.”
Grayscale began using the index around the same time, and then after a regularly scheduled quarterly reviewThe fund dumped Bitcoin Cash, Litecoin (LTC), Chainlink(LINK), Polkadot [DOT] and Uniswap (“UNI”) stashes.
Grayscale could use a logical choice. CoinDesk Digital Currency Group owns both the index and the fund. DCG was under scrutiny after Genesis, its lending arm, came up with questions in November.
DCG has been under intense scrutiny since then. Yesterday, the company closed down HQ, its wealth-management division. This was the first time that this news was reported by The InformationGenesis, another DCG company announced large layoffs on the same day.
Earlier this week, Gemini co-founder Cameron Winklevoss shared an open letter accusing DCG CEO Barry Silbert of “bad faith stall tactics.” Genesis is the company’s partner for its Gemini Earn product and has had $900 million worth of user funds locked on its platform since November.
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