Grayscale Investment Group, a crypto-centric asset management firm has reshuffled its digital large-cap fund [DCP] composition for the next quarter with a notable change. Litecoin [LTC], the fourth largest cryptocurrency has seen its dominance increase while XRP saw a sharp decline in its dominance.
Interestingly, Grayscale is a subsidiary of the Digital Currency Group, a venture capital firm operating within the crypto-space which also acquired CoinDesk in January 2016.
Announced on April 5 via a series of tweets, Grayscale mentioned that the notable composition change would sustain from April to June 2019. Many cryptocurrency proponents were in shock at the devaluation of XRP, given the strides the coin and their parent company Ripple have been making over the past few months.
Grayscale stated that their DLC was a passive, rules-based strategy providing exposure to highly valued virtual currencies with 70 percent target total market coverage.
While Bitcoin’s price hike over the $5,000 mark has seen its dominance increase from 66.8 percent to 68.3 percent, the role of other coins have dipped. The top-altcoins Ethereum and XRP have seen their share drop. The former saw a minimal 0.3 percent cut from 13.9 percent to 13.6 percent, while XRP saw a whopping 2.8 percent drop to 11.9 percent.
Bitcoin Cash in the DCP managed to increase from 2.8 percent to 2.9 percent while the biggest gainer was Litecoin, seeing its weightage almost double from 1.8 percent to 3.3 percent. Litecoin’s 2019 price rally, coupled with the imminent halving are key indicators for Grayscale’s confidence in the coin.
The Digital Silver has been on several investors shopping carts since the year turned with the coin inching closer to touching a three-figure price. Trading at under $95 at press time, the coin’s price was under $40 when the year began. With solidified defenses against 51 percent attacks, a significant growth in hashrate, a host of development and adoption cases, and the imminent August 2019 halving, the coin has seen a massive rise of over 200 percent in price.
Since the Bitcoin price-rally began earlier this week, Grayscale has seen their assets soar above $1 billion for the first time in several months. Their Digital Large Cap Fund accounts for $11 million of the total, while other single-asset products cover virtual currencies like Bitcoin, Ethereum, Ethereum Classic [ETC], Zcash [ZEC] among others.
Furthermore, the next composition change would take place in June 2019, prior to which the mixture of the DLC would be unchanged.
Unsurprisingly, the XRP camp was left annoyed, while Litecoin enthusiasts were buoyed. @dennis56922936 stated:
“Less XRP?? Going the wrong way.”
“Less XRP? Not a very wise investment decision.”
@LitecoinPope was ecstatic:
“We are moving in the right direction! Go LTC!”
Subscribe to AMBCrypto’s Newsletter