Cardano REMOVED From GrayScales BIGGEST Fund - 9 MILLION Dollars SOLD!

Summary

Cardano 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

00:00

📉 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.

05:01

🔄 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.

10:02

💡 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.

Keywords

💡Cardano

Cardano is a decentralized, open-source blockchain platform that aims to provide a secure and scalable infrastructure for the development and execution of smart contracts and decentralized applications (dApps). In the video, Cardano's recent delisting from Grayscale's Digital Large Cap Fund is discussed, highlighting its impact on the market and the reasons behind the decision.

💡Grayscale

Grayscale is the world's largest digital currency asset manager, offering a variety of investment products that allow institutional and individual investors to gain exposure to digital currencies without directly buying or selling the underlying assets. In the context of the video, Grayscale's decision to delist Cardano from its Digital Large Cap Fund is a significant event affecting Cardano's market presence and investor sentiment.

💡Digital Large Cap Fund

The Digital Large Cap Fund is an investment vehicle managed by Grayscale that tracks the performance of a basket of the largest and most liquid digital assets. The fund undergoes periodic rebalancing to maintain its exposure to the top-performing digital currencies based on specific criteria such as trading volume and market capitalization.

💡Rebalancing

Rebalancing is the process of adjusting the composition of an investment portfolio to maintain an desired balance between different assets. In the context of the video, Grayscale's rebalancing of its Digital Large Cap Fund involves periodically selling and buying assets to ensure the fund remains invested in the most attractive digital currencies based on their performance and trading volume.

💡Trading Volume

Trading volume refers to the total amount of a specific asset that is traded on financial markets over a given period. High trading volume often indicates strong interest and liquidity in an asset, which can influence investment decisions and market sentiment.

💡ADA

ADA is the native cryptocurrency of the Cardano blockchain platform. It is used for transactions and as a means of participating in the network's consensus mechanism, including staking. In the video, the impact of the delisting on ADA's market dynamics and the existence of other investment products that include ADA are discussed.

💡ETP

An Exchange Traded Product (ETP) is a type of security that is traded on stock exchanges, similar to stocks. ETPs can be backed by various types of assets, including cryptocurrencies like ADA, and provide investors with exposure to the price movements of the underlying asset without directly owning the asset.

💡Smart Contract Fund

A Smart Contract Fund is an investment fund that specifically focuses on cryptocurrencies and digital assets that facilitate the execution of smart contracts. These funds can invest in a variety of digital currencies that support smart contract functionality, such as Cardano.

💡Asset Under Management (AUM)

Asset Under Management (AUM) refers to the total market value of the assets that an investment fund, including ETPs and other investment vehicles, manages on behalf of its clients. AUM is an important metric for investors as it provides an indication of the size and scope of an investment manager's business.

💡CoinDesk

CoinDesk is a leading digital media, events, and information services company that focuses on the cryptocurrency and blockchain industry. It provides news, research, and data services to its users, and is known for its indices and rankings in the crypto space.

💡Market Capitalization

Market Capitalization, often abbreviated as 'market cap,' is the total value of all outstanding shares of a publicly-traded company or, in the case of cryptocurrencies, the total value of all the units of a particular digital currency. It is calculated by multiplying the current price of the asset by the total number of outstanding units.

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