Grayscale Investments, a cryptocurrency asset management, has increased its Cardano (ADA) allocation in its fund, which provides investors with exposure to smart contract blockchain networks while excluding Ethereum (ETH).
Grayscale has increased its allocation of Cardano's ADA on the Grayscale Smart Contract Platform ex Ethereum Fund (GSCPxE) to 32.33% per share, with each GSCPxE share now containing 4.34 ADA, says CryptoCapitalVenture founder Dan Gambardello.
The higher allocation to ADA saw other assets allocations reduced. Solana (SOL) is currently the fund's second-largest position, with a 21.3% allocation, down from 23.3% at debut.
Solana is followed by Polkadot (DOT), which has a 15.09% allocation, down from 15.4% at the start, and Avalanche ($AVAX), which has a 10.4% allocation, down from 18.4% when the fund began in March.
The GSCPxE fund, according to Grayscale CEO Michael Sonneshein, allows investors to bet on a number of different platforms rather than one emerging as the major venue for DeFi and decentralized applications (DApss). Polygon (MATIC), Stellar (XLM), Cosmos (ATOM), and Algorand (ALGO) are among the fund's other holdings.
The holdings of the fund are weighted by market capitalisation. Grayscale rebalanced its Digital Large Cap Fund (GDLC) last year to include a new ADA component, allowing investors to gain exposure to the cryptocurrency after it gained over 1,000 percent in a year.
Significant investors managing around $200 billion in assets are abandoning the second-largest cryptocurrency, Ethereum (ETH), in favor of three other altcoins: Cardano (ADA), Polkadot (DOT), and XRP.
The crypto community recently forecasted that the price of Cardano's native ADA token will top $1 by the end of June, following the adoption of the Vasil hard fork, which is expected to offer significant network improvements.
The Vasil hard fork is a significant improvement that will include four Cardano Improvement Proposals (CIPs).
ADA has already outperformed multiple other cryptocurrencies after the hard fork, despite a broader cryptocurrency market decline caused by the Terra ecosystem's demise. This week, ADA surpassed XRP to become the sixth-largest crypto by market capitalization.