Posted 11 months ago | by Catoshi Nakamoto
Cardano has been added to Grayscale Investments’ large-cap cryptocurrency fund and is now the third-largest asset in its investment portfolio after Bitcoin and Ether.
Mainstream investors and finance is beginning to flood into Cardano. Well, actually institutional investors started pouring money into Cardano in May of this year. But now Grayscale Investments lead by Digital Currency Group has jumped into the fray. This is because Grayscale sees a new demand for crypto digital assets in general.
“Digital currencies have reached an inflection point,” CEO Michael Sonnenshein commented in March. “Investor demand has never been higher, and every day we’re seeing new entrants to what has surely become a bona fide asset class.”
Ironically, over the weekend Cardano Founder Charles Hoskinson was trolled for a tweet last year in July predicting that by this time there would be “hundreds of assets” and “thousands of Dapps” running on Cardano’s blockchain. As if the project isn’t still actively developing and preparing for the release of Smart Contracts by September if all goes well on the Alonzo testnet. But while the trolls are busy smearing and mocking Charles for slow development and testing everything before release, institutional investors are accumulating ADA the native asset of the Cardano ecosystem.
There are thousands of assets on Cardano. I guess you haven't been paying attention. Tons of devs learning, training, writing. Lots of launch apps.
— Charles Hoskinson (@IOHK_Charles) July 4, 2021
Edward McGee, Vice President of Finance at Grayscale, said the following on the decision to add ADA to the fund:
“We are excited to welcome Cardano to our Digital Large Cap Fund’s portfolio as we work to ensure that our diversified Fund can safely hold assets that collectively comprise 70% of the entire digital asset market. Digital currencies represent a unique opportunity for investors to diversify their portfolios, and at Grayscale, we are proud to provide our investors with access to leading digital currencies through regulated, familiar product offerings.”
Grayscale doesn’t put its weight behind just any crypto digital asset, it’s the world’s largest digital currency asset manager in the space with about $30 billion in assets under management (AUM). Grayscale announced Friday the addition of Cardano to its Digital Large Cap Fund (OTCQX: GDLC). Grayscale stated this fund is “a passive, rules-based strategy that seeks to provide exposure to 70% of the digital asset market.”
The announcement followed a regular quarter review and rebalancing of its digital asset fund. The company explained:
“In accordance with the fund’s construction criteria, Grayscale has adjusted the fund’s portfolio by selling certain amounts of the existing fund components in proportion to their respective weightings and using the cash proceeds to purchase cardano (ADA).”
Grayscale Investments offers institutional investors 14 investment products. Its Digital Large Cap Fund has approximately $357 million in AUM at the time of this report.
Earlier last month, Grayscale announced on Twitter that it was considering 31 crypto assets for investment products, including ADA. In April, the company announced its intention to convert GBTC into a Bitcoin Exchange-Traded Fund (ETF). Even if the trolls don’t see promise in Cardano, Grayscale does and it actively now has skin in the game.
Cardano is poised to be one of the biggest winners of this bull run having surged from just a few cents to $1.38 at the time of this report. Cardano continues its development with Alonzo in three phases — Alonzo blue, white, and purple with each stage opening up the blockchain more to the public to test until full integration some time in August to September. The process will take roughly 90 days resulting in a smart contract enabled Cardano blockchain once the testnet has been thoroughly battle-tested.
On Cardano’s development website, the Alonzo announcement first announced in late May stated that the upgrade will bring exciting new features including Smart Contract capability.
“The ‘Alonzo’ hard fork will bring exciting and highly-anticipated new capabilities to Cardano through the integration of Plutus scripts onto the blockchain. These will allow for the implementation of smart contracts in Cardano, enabling the deployment of a wide range of new DeFi applications for the first time,” developers of the Cardano blog write.
“Over the next few months, the program will expand to include more users as we integrate new testnet functionality and features on the way to mainnet deployment,” they continue.
According to a recent live discussion on IOHK‘s YouTube, Tim Harrison, IOHK’s Marketing Director, along with Nigel Hemsley, Kevin Hammond, and Dimitris Poulopoulos announced that Cardano will soon move from Alonzo Blue to White. As per a comment made by Kevin Hammond, the technology manager at IOHK, “the transition between Alonzo blue to Alonzo White is scheduled for the next coming weeks.”
There is now approximately 43.3 Billion ADA worth or over $31 billion staked in Cardano’s network, according to Cardano on-chain analytics site CardanoPoolTool. That amount now represents around 71% of the total circulating supply and institutional investors are paying attention.
Cardano is being built in five stages, each named after famous poets or computer scientists. Cardano’s current Goguen phase is named after Joeseph Goguen, an American professor of computer science from the University of California and the University of Oxford.
Cardano is currently trading at [FIAT: $1.42] DOWN -1.4% in the last 24 hours according to Coingecko at the time of this report.