Grayscale Investments, a cryptoasset management firm and a subsidiary of the Digital Currency Group, has recently revealed it reviewed the weightings of its Digital Large Cap Fund (DLC). Its revision saw it reduce the fund’s exposure to XRP, and increase its exposure to Litecoin (LTC).
Grayscale’s Digital Large Cap Fund is a fund that “seeks to hold large cap digital assets that collectively comprise 70% of the entire digital asset market,” allowing investors to gain exposure to the top cryptocurrencies on the market.
According to the firm’s report, it decreased the portfolio’s weighting of XRP from 14.7% to 11.9%, while adding in LTC, rising from 1.8% to 3.3%. Currently, the fund is mostly invested in bitcoin, the flagship cryptocurrency, and in ethereum classic (ETC).
3/ Although no new assets qualified for inclusion following DLC’S Quarterly Review (3/31/19), the below table highlights how DLC’s weightings have changed from December 31, 2018 to March 31, 2019: $BTC $ETH $XRP $BCH $LTC pic.twitter.com/HwlKPKTQDV— Grayscale (@GrayscaleInvest) April 5, 2019
As a result of this month’s cryptocurrency rally, which saw bitcoin hit a five-month high thanks to a mysterious 20,000 bitcoin order, Grayscale Investments now has over $1 billion in assets under management (AUM) for the first time in months. Its DLC fund represents only $11 million of the total.
Back in December of last year, Grayscale notably got its holdings to over 203,000 BTC, making it the largest institutional bitcoin holder. The firm has launched funds dedicated to various cryptocurrencies, with Stellar Lumens (XLM) being one of the latest ones to be launched.
The firm’s increased exposure to litecoin is notable, as this week former Goldman Sachs partner and the founder of crypto-focused merchant bank Galaxy Digital, Mike Novogratz, revealed he believes litecoin is a “glorified test net” for bitcoin, and advised his followers to sell LTC for BTC.
Litecoin creator Charlie Lee often claims the cryptocurrency acts as the silver to bitcoin’s gold, meaning those who see BTC as digital gold should be seeing LTC as digital silver. Grayscale, after reporting ‘slow’ business in the last quarter of last year, raised an additional $30 million.