Crypto investment firm Grayscale today added Cardano (ADA) to its Digital Large Cap Fund. The New York City-based company announced that the altcoin would make up 4.26% of the fund.
Most of Grayscale’s Digital Large Cap Fund is still Bitcoin (67.47%) and Ethereum (25.39%) but the company wanted to add Cardano, the fifth largest cryptocurrency by market cap, to diversify its portfolio, it said.
Grayscale added Chainlink (LINK) to its Digital Large Cap Fund in April. LINK now makes up 0.86% of the fund.
“We are excited to welcome Cardano to our Digital Large Cap Fund’s portfolio as we work to ensure that our diversified Fund can safely hold assets that collectively comprise 70% of the entire digital asset market,” Edward McGee, Vice President of Finance at Grayscale, said in a statement.
Cardano is a blockchain platform that competes with the likes of Ethereum. Cardano’s founder, Charles Hoskinson, also co-founded the Ethereum network. The project calls itself the “first third generation cryptocurrency” and, like Ethereum, aims to be a platform on which people can create smart contracts (bits of code that carry out instructions automatically.)
ADA, Cardano’s native cryptocurrency, has climbed up the ranks within the last year. It’s now the fifth-most valuable crypto asset around, with a market cap of $43 billion. ADA was today trading at $1.35, up nearly 1% in the past 24 hours, according to CoinGecko.
Grayscale is a popular investment vehicle that holds cryptocurrencies and allows investors to have a stake in them—without actually holding them—by buying shares that represent the digital assets.
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This way, investors don’t need to worry about the buying and storing of cryptocurrencies, which can be complex for the traditional investor.
The rest of its Digital Large Cap Fund is made up of Bitcoin Cash (1.03%) and Litecoin (0.99%)—two other assets that sit in the top 20 biggest cryptocurrencies by market cap.