The company’s statement informed that no new tokens would be added as a replacement for removed altcoins. The fund components of the Digital Large Cap Fund (OTCQX: GDLC) now contain the following assets and weightings: Bitcoin (BTC), 68.88%, Ethereum (ETH), 25.22%, Cardano (ADA), 2.71%, Solana (SOL), 2.23%, and Avalanche (AVAX), 0.96%.
The digital asset manager also announced it trimmed its DeFi Fund that provided investors with exposure to a selection of industry-leading protocols. As a result of the rebalancing, Yearn Finance (YFI) has been removed from the basket of assets without any replacement. Currently, Uniswap maintains the largest share within the aforementioned fund with 56.35%, followed by MakerDAO (MKR), 13.49%, Aave (AAVE), 12.44%, Curve DAO Token (CRV), 7.48%, Amp (AMP), 5.52%, and Compound (COMP), 4.72%.
Lastly, Grayscale removed Stellar Lumens (XLM) from the Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund), where Cardano has the largest share along with Solana, Polkadot, Avalanche, and Polygon.
Such changes in the funds’ portfolios reflect economic hardships Grayscale is facing as its AUM has considerably decreased since November 2021. The digital assets manager is currently locked in a legal stalemate with SEC over its largest investment product, Grayscale’s Bitcoin Trust (GBTC). Grayscale’s application to convert the trust into the first spot Bitcoin ETF in the US was rejected, so it initiated a lawsuit against SEC. According to Grayscale’s CEO, Michael Sonnenshein, the case may take nine to 12 months.