Grayscale removed 5 cryptocurrencies from its larger-cap fund at the end of the second quarter and the need to make adjustments on its trusts so let’s read more today in our latest crypto news.
Grayscale whose focus has been on turning the flagship Trust into a spot BTC ETF removed five altcoins from the Digital Large Cap fund and the assets in question are Bitcoin Cash, Polkadot, Chainlink, Litecoin, and Uniswap. The statement from earlier this week informed that the biggest digital asset manager sold a certain amount of the existing fund Components in proportion to the respective weightings. Grayscale removed 5 cryptocurrencies from the Digital Large Cap fund and won’t add any replacements.
Bitcoin continued to have its largest share in the fund with 68.88% right after Ethereum with 25.22%, Cardano with 2.71%, SOL with 2.23%, and AVAX with 0.96%. Grayscale removed Yearn fiannce as well from its DEFI fund and won’t replace it with another asset. Uniswap is the leader in the product with 56%, MakerDAO with 13.49%, Curve with 7.48%, Aave 12.44%, and Compound with 4.72 are next. The asset manager delisted Stellar Lumens from its Smart Contract Platform where Cardano, Polkadot, and Solana have the biggest theatres. The changes came at an intriguing time for Grayscale which saw its AUM? Drop considerably.
The company is now focused on converting its BTC trust into the spot BTC ETF in the states which saw no success. The SEC rejected Grayscale’s latest application which pushed the asset manager into legal action against the regulator.
As recently reported, The shares of the Grayscale Bitcoin Trust were trading at a discount of 35% after the US SEC rejection of its application to transition into a spot market BTC ETF. The circumstances are ironic given the discount was one of the primary arguments why the transition needed to happen. The company held a private meeting with the SEC and it argued that converting the BTC trust to an ETF can unlock $8 billion for investors by simply eliminating the discrepancy.
Back then, the GBTC shares traded at a 25% discount against the company’s BTC which means it was 25% less expensive to purcahse GBTC than the BTC that it represents. A day ago, the discount grew to 35% based on the Grayscale calculator and while its BTC per share stood at $18.62, the marekt price of the share was $13.32 each.
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