Despite Price Drop, Grayscale Increases Cardano Allocation

▲ Cardano (ADA)

Global digital asset manager Grayscale has significantly increased the weighting of Cardano (ADA) to more than 20% within its smart contract platform-related funds, drawing heightened attention from institutional investors.

According to crypto-focused media outlet The Crypto Basic on February 24 (local time), Grayscale recently rebalanced the portfolios of its “Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE)” and “Grayscale Smart Contract Fund.” The most notable change in this adjustment was the increase in Cardano’s allocation from 19.50% to 20.12%. As a result, Cardano has solidified its position as the third-largest holding in the fund, following Solana (SOL) and Ethereum (ETH).

This increase is particularly significant as it was made despite recent price stagnation and declining network activity on the Cardano blockchain. Analysts interpret Grayscale’s move as reflecting institutional confidence in Cardano’s long-term technology and ecosystem expansion potential rather than short-term price fluctuations. In particular, Cardano’s efforts to expand Bitcoin-based decentralized finance (DeFi) infrastructure may have served as a positive signal to institutional investors.

According to the revised fund composition, Solana holds the largest share at approximately 28.58%, closely followed by Ethereum at 28.41%. Cardano ranks third with 20.12%, reinforcing its status as a major smart contract platform within the fund. The remaining portfolio includes Avalanche (AVAX), Sui (SUI), Hedera (HBAR), and Polkadot (DOT).

Grayscale’s smart contract fund is rebalanced quarterly to reflect market changes and features a cap ensuring that no single asset exceeds 30% of the portfolio, providing diversified exposure. The latest adjustment was reportedly carried out through a series of small incremental increases rather than a large one-time purchase, suggesting that institutions have been quietly raising their exposure to Cardano.

Amid ongoing volatility in the digital asset market driven by macroeconomic uncertainty, Grayscale’s decision is expected to inject renewed momentum into the Cardano ecosystem. As institutional capital recognizes Cardano as a key programmable network and expands its allocation, market attention is now focused on whether improvements in on-chain data will translate into tangible value appreciation in the future.

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