Grayscale Removes Avalanche (AVAX) Token From Portfolio

  • On Friday morning, Grayscale filed a notice with the SEC detailing the rebalancing.
  • The Grayscale fund manages $163 million in assets.

After the Grayscale Digital Large Cap Fund liquidated its investment in the Avalanche network on Thursday, the AVAX token dropped by around 3% on Friday.

On Friday morning, Grayscale filed a notice with the SEC detailing the rebalancing, explaining 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.”

In a thread on Twitter, the business said that it has also rebalanced its DeFi Fund to include Synthetix (SNX) while selling off Algorand (ALGO) from its Smart Contract Platform Ex-Ethereum Fund. Last month, Avalanche’s token appreciated by 6.9 percent, reaching $13.65 as per data from CMC. However, early Friday trade showed a 15% drop from the previous month, to $11.56.

Held Less Than 1% 

Furthermore, the Grayscale fund, which manages $163 million in assets, held a very modest amount of AVAX. Based on the most recent quarterly report, as of September 30 AVAX accounted for less than 1% of the fund’s total assets.

Bitcoin now makes up 65% of the portfolio, Ethereum 31%, Cardano’s ADA token 2%, Polygon’s MATIC 1%, and Solana’s SOL 1%. Since July, Grayscale has been monitoring the CoinDesk Large Cap Select Index. This April-born index follows “the largest and most liquid digital assets” as measured by their combined market value.

Moreover, coincident with Grayscale’s adoption of the index, the fund sold its holdings in Bitcoin Cash (BCH), Litecoin (LTC), Chainlink (LINK), Polkadot (DOT), and Uniswap (UNI) after its quarterly review.

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