Grayscale Investments just released an update on the composition of its Digital Large Cap Fund (DLC), which offers qualified investors exposure to the top cryptocurrencies. Comprised of the five largest cryptocurrencies by market cap – Bitcoin, Ethereum, XRP, Bitcoin Cash and Litecoin – the fund increased its Litecoin investment by 83.33%, up from 1.8% last quarter to 3.3% at the close of Q1. The increase represents the biggest percentage gain among the altcoins held by the company’s large cap fund.
The fund also increased its Bitcoin allocation from 66.8% to 68.3%, and Bitcoin Cash from 2.8% to 2.9%.
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
Grayscale rebalances the DLC on a quarterly basis, adding or removing cryptocurrencies based on the company’s fund criteria. The latest rebalancing sees a decrease in XRP from 14.7% to 11.9%, and a decrease in Ethereum from 13.9% to 13.6%.
The investment firm, which is owned by Digital Currency Group, is the world’s largest crypto asset manager with over $1.1 billion in assets under management – $1.06 billion allocated in its Bitcoin Trust and $11 million in its DLC.
Barry Silbert, CEO and founder of Digital Currency Group and Grayscale Investments, says he’s “as bullish as he has ever been” on Bitcoin.
In an interview with CNBC, Silbert says,
“I’m convinced that whatever money is in gold is not going to stay in gold. That gets handed down to millennials – I’m highly confident a lot of that will go into Bitcoin.”
The long-term strategist has predicted that Bitcoin prices will “snap back hard” if and when sentiment changes. As Bitcoin increasingly defines itself as a store of value, the less it will need to prove its worth through different use cases, like paying for pizza, ice cream and Netflix. Instead, it will target the $8-trillion gold market cap. And just like gold, he expects it to thrive without the need for merchant adoption.
A long-term crypto strategist, Silbert has remained steadfast about Bitcoin’s resurgence and his conviction that the top cryptocurrencies will thrive while nearly all others will fail.
“I’m not a believer in the vast majority of digital tokens and believe most will go to zero.”
Bitcoin (BTC) = digital gold
Ripple (XRP) = SWIFT 2.0
Ethereum Classic (ETC) = gas for Internet of Things
Zcash (ZEC) = private transactions
— Barry Silbert (@barrysilbert) September 15, 2016
Grayscale Investments currently holds assets in Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Horizen, Litecoin, Stellar Lumens, XRP and Zcash.