Cardano REMOVED From GrayScales BIGGEST Fund - 9 MILLION Dollars SOLD!
Summary
TLDRCardano has been delisted from Grayscale's Digital Large Cap Fund, which manages over half a billion dollars in assets, due to a quarterly rebalancing based on trading volume rather than price. Despite this, Cardano remains listed on the Smart Contract X Ethereum Fund and has significant backing in other ETP products, including the 21 Shares Cardano-based ETF and the newly launched Cardano Liquid ETP on the Swiss 6 exchange.
Takeaways
- 📉 Cardano (ADA) has been delisted from Grayscale's Digital Large Cap Fund, which currently manages over half a billion dollars in assets.
- 🔄 The delisting is part of Grayscale's quarterly rebalancing process, not specifically due to price but rather trading volume.
- 📊 Cardano's year-to-date performance and trading volume were factors in its removal, with XRP and Avalanche replacing it in the portfolio.
- 🔄 The rebalancing methodology is based on the CoinDesk Large Cap Select Index Fund, which measures the market cap-weighted performance of the largest and most liquid digital assets.
- 💹 The selection universe for the fund is calculated using the median daily value traded (MDVT) across eligible exchanges over a 30-day period.
- 📈 Despite the delisting, Cardano is listed in the Smart Contract ETF, which includes a significant portion of ADA shares.
- 💰 The Smart Contract ETF has significantly less assets under management compared to the Digital Large Cap Fund, highlighting the impact of the delisting.
- 🔄 There is potential for Cardano to be relisted in the future if its trading volume increases and meets the fund's criteria.
- 💼 Other significant ETP products, such as the 21Shares Cardano-based ETF and the Liquid Labs Cardano ETP, continue to be composed of and backed by ADA.
- 🌐 The Swiss 6 exchange has also listed a Cardano Liquid ETP, which stakes the ADA and provides staking rewards back to investors.
- 📊 The total assets under management in the various ADA-backed ETP products are a positive sign for Cardano's continued presence in the market.
Q & A
Why was Cardano delisted from Grayscale's Digital Large Cap Fund?
-Cardano was delisted due to the fund's rebalancing, which was not specifically due to price but rather the trading volume Cardano received on larger centralized exchanges.
What was the historical portfolio balance of the Grayscale Digital Large Cap Fund a year ago?
-A year ago, the portfolio consisted of Bitcoin at 67%, Ethereum at about 28%, Cardano at 1.69%, Polygon at 1%, and Solana at 1%.
How has the portfolio balance changed after the rebalancing?
-After the rebalancing, Bitcoin constituted 71%, Ethereum 21%, Solana increased to about 4.5%, XRP and Avalanche were new additions, and Cardano and ADA were removed.
What are the assets under management for the Grayscale Digital Large Cap Fund and the Smart Contract Fund?
-The Digital Large Cap Fund has over $579 million, while the Smart Contract Fund has approximately $4.7 million in assets under management.
How does the CoinDesk methodology for rebalancing the portfolio work?
-The CoinDesk methodology uses the median daily value traded (MDVT) across eligible exchanges over the previous 30-day period and the closing market cap as of the reconstitution reference date to determine eligible assets.
What other ETP products are composed of Cardano (ADA)?
-There is the 21 Shares Cardano-based ETF or ETP with an asset under management amount of $51 million and the Cardano Liquid ETP listed on the Swiss 6 exchange with about $869,000 worth of assets under management.
What is unique about the Cardano Liquid ETP on the Swiss 6 exchange?
-The Cardano Liquid ETP is unique because it stakes the ADA underlying the ETP and provides the staking rewards directly back to the investors of the fund.
How often is the Grayscale Digital Large Cap Fund rebalanced?
-The Grayscale Digital Large Cap Fund is rebalanced quarterly, or four times per year.
What could lead to Cardano being relisted in the Grayscale Digital Large Cap Fund in the future?
-If Cardano's trading volume increases and meets the criteria set by the CoinDesk methodology used for rebalancing, it could potentially be relisted in the fund.
How does the removal of Cardano from the Grayscale Digital Large Cap Fund impact the market?
-The removal has a significant impact as the fund is large, with over half a billion dollars in assets under management. However, Cardano still has other substantial ETP products backing it.
What is the significance of Cardano's listing on the Smart Contract X Ethereum Fund?
-Cardano's listing on the Smart Contract X Ethereum Fund signifies its recognition as a significant smart contract platform. It has a 14.62% share in the fund, which is a positive indicator of its utility and potential growth.
Outlines
📉 Cardano Delisting from Grayscale's Digital Large Cap Fund
The first paragraph discusses the recent delisting of Cardano from Grayscale's Digital Large Cap Fund, which has over half a billion dollars in assets under management. The video aims to explain why Cardano was removed and explores the possibility of its future relisting. It also mentions other ETP products that include ADA and provides an overview of the Grayscale Digital Large Cap Fund's rebalancing, highlighting the shift in portfolio composition and the reasons behind Cardano's delisting, primarily due to trading volume rather than price performance.
🔄 Cardano's Portfolio Shift and Methodology Behind Rebalancing
This paragraph delves into the specifics of Cardano's portfolio shift and the methodology used by Grayscale for rebalancing. It explains that the removal of Cardano was part of the quarterly fund rebalancing and provides historical portfolio balance data. The paragraph also discusses the criteria used for asset selection in the Coindesk Large Cap Select Index Fund, which Grayscale follows, emphasizing trading volume and market cap as key factors. It further compares the assets under management in different funds and outlines Cardano's presence in the Smart Contract X Ethereum Fund.
💡 Other Cardano-Backed ETP Products and Their Impact
The final paragraph focuses on other ETP products backed by Cardano, such as the 21 Shares Cardano-based ETF/ETP and the Cardano Liquid ETP listed on the Swiss 6 exchange. It provides details on the assets under management for these products and contrasts them with the delisted position in the Digital Large Cap Fund. The paragraph also touches on the staking rewards for the Liquid ETP, which are passed directly to investors, and concludes with a brief recap of the main points discussed in the video.
Mindmap
Keywords
💡Cardano
💡Grayscale
💡Digital Large Cap Fund
💡Rebalancing
💡Trading Volume
💡ADA
💡ETP
💡Smart Contract Fund
💡Asset Under Management (AUM)
💡CoinDesk
💡Market Capitalization
Highlights
Cardano has been delisted from Grayscale's Digital Large Cap Fund, which manages over half a billion dollars in assets.
The delisting is part of Grayscale's rebalancing process for the last quarter.
Cardano's removal was not due to pricing but trading volume.
Grayscale's methodology for rebalancing is based on the trading volume of digital assets.
Cardano's year-to-date performance was a factor in its removal from the fund.
The historical portfolio balance included Bitcoin, Ethereum, Cardano, Polygon, and Solana.
The current portfolio value shows Bitcoin, Ethereum, Solana, XRP, and Avalanche.
Cardano is listed on the Smart Contract X Ethereum Fund, which includes a variety of smart contract platforms.
The assets under management for the Grayscale Digital Large Cap Fund is over $579 million.
The Smart Contract Fund has approximately $4.7 million in assets under management.
The difference in assets under management between the two funds is significant, with the Large Cap Fund being almost 150 times larger than the Smart Contract Fund.
Cardano's theoretical 1.69% share in the Large Cap Fund equates to around $9.7 million being held in ADA.
The hope is that with increased trading volume, Cardano may be relisted in the future.
The rebalancing is expected to shift as the digital asset space grows and new leaders emerge.
The CoinDesk Large Cap Select Index Fund measures the market capitalization performance of the largest and most liquid digital assets.
The selection universe for the fund is calculated using the median daily value traded (MDVT) across eligible exchanges over a 30-day period.
Assets in the selection universe must also have a determined closing market cap as of the reconstitution reference date.
21 Shares has a Cardano-based ETF or ETP, which is 100% physically backed by ADA and has $51 million in assets under management.
The Swiss 6 exchange has listed the Cardano Liquid ETP, which has $869,000 worth of assets under management and provides staking rewards back to investors.
Transcripts
cardano has just been delisted from
grayscales digital large Cap Fund which
has right now over a half a billion
dollars in assets under management this
has a pretty big impact as a part of
today's video I want to highlight why
cardano was removed if we could see
cardano relisted in the future as well
as exactly what replaced cardano now
that said I want to end on a positive
note touching on other ETP products that
are also comprised of
ADA
what's up aen Nation welcome to DB
Central your home for everything
blockchain and crypto my name is fared
and as I just mentioned there we have
the grayscale digital large Cap Fund
officially delisting cardano as a part
of their rebalancing for the last
quarter now as a part of this video I
want to talk about why that happened
exactly where cardano stands and I also
want to highlight another product given
out by grayscale that actually has quite
a bit of ADA um shares as a part of it
in addition I want to I want to end off
by highlighting the 21 shares ETP as
well as the ETP that was just launched
by liquid Labs as a part of the six
Swiss exchange so if you guys do
appreciate content like this I would
appreciate you if you could smash that
thumbs up if it's your first time
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Stak pool which is steak pool tier dapp
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Ada as well as Mata and the Sarah token
given the fact that the pool is an ispo
partner for both of those going both of
those ongoing ispos let's go ahead and
just jump right on in shout out to stake
with pride for breaking this news with
any the cardano community I've got a
couple of Articles here and I want to go
ahead and just jump right on in and
explain why kurdo was actually removed
from the rebalancing or from the
portfolio so it say here that gray skill
has dropped adah and Adam after their
quarterly rebalance ing the proceeds
from the sold tokens were used to buy
existing portfolio components according
to grayscale both cardano and Adam are
down year-to date I want to take a
moment to just let you guys know that
this rebalancing was not due to pricing
specifically but it was actually due to
the trading volume um that cardano has
received I'm going to dive into the
methodology um that coindesk actually
uses in order to rebalance her portfolio
which is exactly who grce scale uses
when um identifying who to also
rebalance rebalance with as well so it
states here the removal of the tokens
was part of great scales quarterly fund
rebalancing and they are the world's
largest crypto Focus asset manager and
they announced that on the 4th of April
taking a look at the Historical
portfolio balance we have uh Bitcoin
coming in with 67% ethereum with about
28% cardana with 1.69% polygon with 1%
and salana with 1% as well now this was
a year ago on April 5th of 2023 so a lot
of time has gone by but the um relative
amount of cardano was at about
1.69% now if I jump over to the actual
platform and we take a look at what the
current value of the portfolio is at we
have Bitcoin with 71% ethereum with 21%
salana getting an increase right so
going from 1% on the way to about 4.5%
followed by xrp which is brand new and
Avalanche which is also brand new so
cardano in madic being removed and
replaced by xrp in avalanche let me know
what you guys think down below I know
xrp from a price perspective has not
moved in the last I would say maybe two
to three years right versus cardano
which is now up over 160% since the lows
back in October so again it's not
necessarily due to the price
appreciation or the price action but the
trading volume on some of the bigger
centralized exchanges now if I jump over
into this next P here out do want to
quickly highlight some positive news
which is the fact that cardano is listed
on the smart contract X ethereum fund so
basically any smart Contracting platform
excluding ethereum where salana makes up
the majority with 58% cardano with 14%
Avalanche at 12 polka dot at 8 and
polygon at 6 now I want to also talk
about the assets under management
because both of these two funds are
completely different if I jump back over
to the gdlc fund or the large Cap Fund
there's over U let's see here
579 million do in assets under
management so a little bit over a half
of a billion dollars whereas the smart
contract fund has just about $4.7
million so between both those two funds
the large Cap Fund is almost 150 times
larger than the X smart contract
platform fund now can find all this
information out from the actual
grayscale website I've gone ahead and
duck some of this up this is the Smart
contract X fund and as you can see here
we got a asset under management amount
of $4.7 million if I jump over in
comparison to the large Cap Fund that
has over again $579 million in assets
under management scrolling down we can
see the exclusion now of cardano in the
current Holdings and if I jump over here
we can see the current Holdings of
cardano for the xart contract fund which
is right at about 14.62% now just to run
some numbers here if we go ahead and
take the theoretical
1.69% that cardano had when it was
listed and we take that value from the
current assets under management that
would equate to somewhere around $9.7
million being held in that large Cap
Fund made up of ADA so quite a
substantial amount compared to the
current amount right which which is 14
14.6% in the smart contract fund which
that has a total asset under management
of $4.7 million so that would be about
$680,000 of cardano so $680,000 versus
$9.7 million as you can see there quite
a big difference which is why this has
such a huge impact on cardano not being
listed there so the hope is that with
additional trading volume coming in the
methodology being used in order to
figure out which assets to list in that
fund would actually begin to favor
cardano in the future again this is
rebalanced every um quarter or four
times per year and so this is expected
to shift right as assets within the
space grow and as Leaders emerge so I
want to quickly touch on the actual
methodology here and so this is done by
coindesk and coindesk I believe passes
this information on to grayscale who
then rebalances their portfolio
accordingly so again it's not done based
off of someone's opinion or just
someone's um favorability towards xrp
salana Etc it's basically done off of
certain volume metrics so it reads here
the coindesk large cap select Index Fund
is designed to measure the market
capitalization or the market cap
weighted performance of some of the
largest and most liquid digital assets
classified in the dacs that meet certain
trading um criteria or custody
requirements I want to quickly touch on
what those requirements are and they're
actually just two of them so number one
it states here that the selection
Universe which is what is used in order
to figure out what can be listed in the
actual fund is calculated using the
median daily value traded or the
mdvt across eligible exchanges over the
previous 30-day calendar period leading
up to and including the reconstitution
reference date so again the the short
and skinny here is that they're using
the
mdvt in order to figure out who is
eligible to be listed on this fund
second it states that for each of the
Assets in the universe right or the
selection Universe they have to
determine the closing market cap as of
the reconstitution reference date so the
trading volume and the market cap appear
to be what are determining which assets
are listed in that digital um large Cap
Fund dictated by gray scale so I want to
quickly touch on that obviously has a
big imp P but it's not the end of the
world this will be rebalanced in about 3
to 4 months and we could expect to see
kurano listed again on the uh index if
the performance in the trading volume
does increase for
Ada the next and last thing I want to
quickly touch on here is the fact that
we still have some other pretty big
funds that are composed of so Ada and
this one here is coming in from 21
shares this is their cardano based ETF
or ETP and it's labeled under ticker a a
this States you that this is 100%
physically backed by Ada and if I scroll
down we have an asset under management
amount of $51 million so this in turn
actually dwarfs the amount that we had
in the large Cap Fund but of course the
more assets under management we can have
the better um but it's good to see that
this is at least right four to excuse me
yeah four to five times larger than the
allocation that was in the previously or
the recently removed digital large Cap
Fund so I want to quickly touch on that
there and in closing we have the Swiss 6
exchange which has now listed the
cardano liquid ETP as well now this is a
little bit smaller it only has about
$869,000 or yeah
$869,000 worth of assets under
management and this actually kicked off
about a month ago um with collaboration
between the cardo foundation and the
liquid protocol one slightly different
piece about this particular ETP or
exchange for their product is the fact
that this also
um Stakes the Ada which is underlying
and provides the Ada staking rewards
directly back over into the investors of
the fund so that will do it here for
today's video again a pretty brief
update I want to touch on some of the
numbers some of the methodology and just
some of the reasoning as to why
cardano's been removed from this fund
however we do still have other ETP
products that are made up and backed
directly by Ada if you learned anything
along the way I would appreciate you if
you could smash that thumbs up if it's
your first time stopping by and you want
more content like this then consider
subscribing and last but not least if
you have any questions for me then make
sure to leave them down below that said
and as always I'll see you guys in the
next
video
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