Cardano (ADA) has undergone a significant resurgence. Technical developments, strategic partnerships, and a meteoric price surge have positioned Cardano for a potential new era of institutional adoption. A key milestone in this journey came when Grayscale, a leading crypto asset manager, quietly reintroduced Cardano into its flagship Digital Large Cap Fund (GDLC), signaling growing institutional interest in the asset.
In April 2024, the Cardano community was left disappointed when Grayscale decided to drop ADA from the GDLC. This move was attributed to a rebalancing in the CoinDesk Large Cap Select Index (DLCS), which the fund tracks. The index measures the market cap-weighted performance of the five most liquid non-stablecoin crypto assets within the top 20 by market capitalization. However, fast forward to January 6, 2024, and ADA’s return to the GDLC has sparked excitement within the community.
While the exact timing remains unclear, it is likely that Grayscale made this adjustment around Q4 2024, coinciding with ADA’s impressive over 300% price surge—from $0.3263 to a high of $1.3264. This dramatic rise in ADA’s price aligns with the increased volume and overall demand for the cryptocurrency, which likely influenced Grayscale’s decision.
Cardano now replaces Avalanche (AVAX) in the GDLC, joining the ranks of Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP within the $811.5 million fund. ADA now represents 1.44% of the fund’s composition, equating to an impressive $11 million in ADA holdings.
The return of ADA to the GDLC not only boosts its institutional exposure but also signals a broader trend of increasing institutional adoption for Cardano. This move could be just the beginning, as Grayscale filed for approval to convert the GDLC into an exchange-traded fund (ETF) in October 2024, which could further increase ADA’s institutional visibility and demand in the coming months.
Also Read: Cardano (ADA) Could Surge to $10, Predicts Crypto Capital Venture’s Dan Gambardello
As institutional interest continues to grow, ADA’s resurgence is poised to reshape its place in the crypto landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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