In a recent development, Grayscale Investments announced an adjustment to its Grayscale Digital Large Cap Fund (GDLC) to include Cardano's ADA as the third-largest holding.
Reflecting the growing demand for crypto investments, the fund’s portfolio was adjusted by selling existing components for fiat currency and reinvesting it in Charles Hoskinson’s ADA token.
As of July 1, 2021, each share of the GDLC basket is comprised of 67.47% Bitcoin (BTC), 25.39% Ether (ETH), 4.26% ADA and the remaining 2.88% is a mix of Bitcoin Cash (BCH), Litecoin (LTC) and Chainlink (LINK).
Back on April 6, 2021, Grayscale pulled off a similar strategy of selling off existing components to include LINK, which currently comprises 0.86% of the portfolio. In the Bitcoin-dominated GDLC basket, ADA currently stands as the third Ethereum-based token after ETH and LINK, signaling a rising interest in the Ethereum ecosystem.
Related: $30B ADA now staked as Alonzo smart contract excitement builds
Soon after the announcement, the market value of ADA shot up and has been on the climb to $1.45 from $1.33, a spike of 9.02% in three days.
Cardano's ADA price hike can also be attributed to the launch of its first Alonzo smart contract testnet on May 27. In this effort, nearly $31 billion worth of ADA has been stacked across 2,665 pools to allow passive income for investors.