TL; DR Breakdown
- Grayscale has added ADA to its crypto portfolio
- The community is responding positively
- Cardano price is in the green
Cardano has been on a winning streak of late, and this trend doesn’t seem to be ready for a pause. The network’s recent upgrades took ADA’s price to new levels – even reaching an ATH of $2.46. Now, something new is happening. One of the world’s largest crypto investment funds has welcomed ADA to its growing list of crypto assets.
The fund in question is Grayscale, a firm that has been in the headlines multiple times for acquiring large amounts of cryptos. Cardano is now part of its multi-billion crypto portfolio. Grayscale announced the good news in a celebratory twitter thread welcoming the new coin into its fold.
Sold stuff to buy Cardano
According to the tweet, Grayscale’s rules of engagement in the crypto business dictate that its clients get exposed to roughly 70% of the crypto market. This explains why the firm has been picking the best digital assets and availing them to its growing list of big investors. While breaking the news of Cardano’s addition to the pool, Grayscale intimated that it sold off some of its other fund components and put the proceeds towards buying ADA.
Every few months (quarterly), Grayscale reviews its investment portfolio whereby it identifies the best investment opportunities for its clients. This time around, it seems that Cardano has won the contest. The next review is expected in late September this year. It will be interesting to see which asset gets added next.
For now, the crypto market is reacting to the current news. Cardano’s own boss reacted by retweeting the good news for all and sundry to see. Indeed, the network has been making huge strides in the past year.
What does it mean for ADA?
More often than not, digital assets that get added to such large investment funds gain ground in terms of acceptance and money influx into their market. This, in turn, shores up the price as demand increases. At the time of this reporting, Cardano is the 5th largest crypto by market cap and trading at around $1.35 -according to data from CoinMarketCap. The crypto appears to be already in the green, posting a 24-hour price increase of 1.5%. It’s yet to be seen how the news influence the market in the coming hours and days.