Some individual trading patterns separated from Bitcoin after the recent surge in the crypto market. Some individual altcoins see the patterns separating although the trend is subjected to the direction of BTC.
A major crypto fund shifted its exposure to different leading cryptocurrency assets. It is due to the uniqueness of current trading activities going on in the world of cryptocurrency. It might signal the way the funds of individual firms will trend in 2019.
Grayscale’s shift its exposure to Bitcoin and Litecoin
An Investment group which goes by the name, Grayscale Investments focuses on digital assets. It announced via a tweet about the adjustment of their Digital Large Cap Funds or DLC crypto holdings. They adjusted it in the last month and reduced its exposure to Ethereum and XRP. However, they have increased their exposure to Bitcoin Cash, Bitcoin and Litecoin.
Further, Grayscale explains that they are pleased to announce the weightings for DLC. The firm elaborates that the move is a passive and rule-based strategy to provide exposure to large-cap segments of the digital asset class. They also indicated the 70% target coverage for their rule-based strategy.
Moreover, Grayscale provides statistics to balance exposure. They say that they are increasing the exposure to Bitcoin, to 68.3% which was earlier 66.8%. While for Bitcoin cash, they are increasing the exposure to 2.9% from 2.8%. The firm also provides information about its exposure to Litecoin which they increased from 1.8 to 3.3%.
Grayscale Reduces Exposure of XRP and Ethereum
Interestingly, Grayscale significantly reduced its exposure to XRP and Ethereum. They are doing it to increase the DLC holdings of Bitcoin, Bitcoin Cash, and Litecoin. A per data provided by Grayscale, they have reduced the exposure of XRP from 14.7% to 11.9%. On the other hand, the reduction happens to Ethereum from 13.9% to 13.6%.
Further, Grayscale goes on explaining that no new crypto assets qualify for the required eligibility. As per quarterly review, no other firm meets the eligibility so that they can add them to the fund.
Due to sudden price surge in the crypto market, the decision comes up to adjust the exposure of funds, with this decision, the leading digital asset firms rise higher.
Fund Rebalancing Sparks due to Bitcoin’s Bubble
Grayscale explained in its tweets how they decided to shift the crypto holding of DLC. According to them, they did so after their quarterly market review. The result of the review led to the rebalancing of its holdings, as per Grayscale. They added that the decision to shift would make an effort to uphold the rule-based strategy of the fund. As per rule-based strategy, it says it seeks to provide exposure to large-cap segments. The rule emphasizes on the segment of the digital asset class.
As per recent data, the surge in the price of Bitcoin went from $3800 to $5300. The price surge of Bitcoin invites other firms in the DLC fund to rise. Bitcoin Cash bubbles from $128 to $340. On the other hand, Litecoin jumps from $50 to $100, which is nearly twice.