Digital asset manager Grayscale has rebalanced its portfolio: Ethereum competitor Cardano (ADA) is now the third largest item in the US firm’s portfolio.
ADA now 4.26% of the portfolio
Grayscale, the world’s leading digital asset management fund, has adjusted its portfolio and”sold certain amounts of existing fund components relative to their respective weightings.” The cash proceeds were then used to purchase Cardano (ADA). The announcement follows news in April that Grayscale had also adjusted the fund’s portfolio and bought it as a result of Chainlink (LINK).
According to data provided by Grayscale, ADA is now the fund’s third largest holding – after Bitcoin and Ethereum. It accounts for 4.26% of the total portfolio.
Edward McGee, Vice President of Finance at Grayscale:
“We are pleased to welcome Cardano to the portfolio of our Digital Large Cap Fund as we work to ensure that our diversified fund can safely hold assets that together account for 70% of the total digital asset market. Digital currencies represent a unique opportunity for investors to diversify their portfolios, and we at Grayscale are proud to provide our investors with access to leading digital currencies through regulated, trusted product offerings.“
Background Cardano (ADA): Cardano (to buy from Libertex or eToro) is a cryptocurrency developed by Ethereum co-founder Charles Hoskinson. Cardano aims to improve the scalability, security and efficiency of Ethereum by using a novel proof-of-stake consensus mechanism called Ouroboros. Inventor Hoskinson even considers them better than Bitcoin – and gives reasons for this in a recent interview.
Charles Hoskinson to Elon Musk: Why Cardano is Better than Bitcoin
Tesla should rather use Cardano instead of Bitcoin – there are good reasons for this, ADA inventor Charles Hoskinson believes. Speaking to podcaster Lex Fridman, Hoskinson emphasizes: Tesla should turn away from Bitcoin if carbon neutrality is indeed a criterion:
“Well, if you really care about alternative energy, sustainability, carbon reduction and carbon neutrality, you can’t be in a system where there’s no built-in mechanism to limit energy consumption. You know, with proof-of-stake, energy consumption is negative.“
Hoskinson believes: Cardano is 1.6 million times more efficient compared to Bitcoin. In addition, Bitcoin is “the least programmable cryptocurrency” and thus unable to do “interesting, unique, sexy things”. However, it should be noted at this point: Cardano’s smart contracts have been delayed for some time, and many industry observers are also critical of Hoskinson’s promises in this regard. Self-made billionaire Mark Cuban, for example, wanted by the crypto community in mid-May know:
“Are you personally able to use ADA for anything? If so, what did you use it for? That’s the question I ask with all cryptocurrencies. Do you use it for anything in which you find value?“
Now Cardanos smart contracts are to be launched this summer and thus put an end to the vaporware rumors. If the long-promised feature comes as advertised, the Cardano price could actually get a push towards a new all-time high.