Grayscale Drops Cardano and Cosmos from Multi-Asset Funds in Quarterly Rebalancing

Grayscale, a leading firm in managing crypto assets, has recently conducted its quarterly fund rebalancing by eliminating two notable digital assets, Cardano and Cosmos, from its multi-asset funds. In an April 4 X post, the company announced the removal of Cardano's ADA token from its Grayscale Digital Large Cap Fund (GDLC) and Cosmos's ATOM token from the Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE).

Cardano holdings in GDLC were liquidated, and the proceeds were reinvested in other fund components according to their respective weights. Presently, the fund is primarily composed of over 70.96% Bitcoin, 21.84% Ethereum, 4.52% Solana, and less than 3% in XRP and Avalanche.

Similarly, Cosmos was divested from GSCPxE, with the proceeds being utilized to acquire other fund components proportionally. Consequently, the fund's composition now includes 58.4% Solana, 14.56% Cardano, 12.25% Avalanche, 8.53% Polkadot, and 6.25% Polygon.

There were no additions or removals from the DeFi Fund, which comprises 48% Uniswap, 20.41% MakerDAO, 13.17% liquid staking protocol Lido, 9.99% Aave, and 7.69% Synthetix.

ADA and ATOM Experience Market Declines

Both ADA and ATOM have experienced significant declines during the day following the news, in line with the broader struggles in the cryptocurrency market. Cardano's ADA and Cosmos's ATOM saw declines of approximately 4% to $0.56 and $10.7 respectively, continuing a downward trend that has seen them lose double-digit percentages over the past month.

In terms of year-to-date performance, Cardano's ADA token fell 8.1%, while ATOM fell over 3.3%, significantly underperforming both Bitcoin and Ethereum. Bitcoin has surged by 59% since the beginning of the year, while Ethereum has rallied over 40%, according to TradingView data.

ADA has dropped over 10% on the weekly chart, falling below the psychological mark of $0.6 on April 2nd and currently sitting 81% below its previous all-time high of $3.10 reached in September 2021.

ATOM has also declined over 10% in the past week, trading at $10.8, 75% below its record of $44.7 reached in September 2021.