In its latest quarterly update, Grayscale announced a rebalancing of funds for the fourth quarter of 2022. As part of the rebalancing, Grayscale has sold a portion of its Digital Large Cap Fund and sold its token holdings. avalanche Network token AVAX.
AVAX fell 2% following a selloff over the past 24 hours. According to Grayscale, the AVAX tokens sold were replaced with purchases of existing fund components in proportion to their respective weightings.
Grayscale of purchased and existing tokens
Avax sell off It’s just part of the CoinDesk Large Cap Select Index and the Grayscale Digital Large Cap Fund. The company sold its Algorand native token ALGO in a rebalancing of its CoinDesk Smart Contract Platform Select Ex ETH Index and Grayscale Smart Contract Platform Ex-Ethereum Fund portfolios.
In the CoinDesk DeFi Select Index methodology, Grayscale adjusted its DeFi fund portfolio and sold some of its existing assets before purchasing Synthetix (SNX).
The Grayscale Portfolio Fund currently contains 65%. Bitcoin (BTC), 30% Ethereum (ETH), 1.86% Cardano (ADA), 1.39% Polygon (MATIC), and 1% Solana (SOL). Meanwhile, the fund components of the DeFi fund include 65.05% Uniswap (UNI), 12.39% Aave (AAVE), 8.15% MakerDAO (MKR), 6.02% Synthetix (SNX), 4.58% Curve DAO Token (CRV), and 3.81% Compound ( COMP).
Since July, Grayscale has been closely monitoring the CoinDesk Large Cap Select Index. Launched in April, the index tracks the market capitalization-based performance of the “largest and most liquid digital assets.”
During the grayscale use of the index, quarterly scheduled rebalancing caused the dumping of Bitcoin Cash (BCH), Litecoin (LTC), Chainlink (LINK), Polkadot (DOT), etc. rice field. Uniswap (UNI) purchase.
AVAX slips after grayscale dump
before it sells out Avax We were still sitting in the $12 zone. However, after Grayscale sold the assets it held, AVAX token fell 2% on him, trading at $11.39 on Friday morning.
AVAX has been highly rated over the past few months. It jumped from about $9 to $13. Notably, the Grayscale Fund’s portfolio, which currently has $163 million in assets under management (AUM), held only a small percentage of AVAX tokens. As of Sept. 30, AVAX accounted for less than 1% of the company’s fund’s assets, according to its previous quarterly report.
There have been no major moves from ALGO, which has also been dropped from the Grayscale Portfolio Fund. It fell from $0.17 to $0.15. At the time of writing, ALGO is currently trading at $11.73 with a 24-hour trading volume of $45 million.
On the other hand, AVAX appears to be gaining upward momentum at the time of writing as it has already formed a retracement. A reversal can occur. AVAX is currently trading at $11.73, down 0.8% over the past 24 hours, with a volume of $125 million for the same period.