Avax is down 2% as the grayscale mega cap fund’s big fund collapses

the Avalanche Network token AVAX fell about 2% on Friday morning after Grayscale Digital Large Cap Fund gave up its holdings.

Grayscale disclosed the portfolio rebalancing in an SEC report Friday morning, saying it “adjusted the fund’s portfolio by selling Avalanche (“AVAX”) and using the cash proceeds to purchase existing fund components in proportion to their respective weightings.”

The company noticed the change in thread on TwitterIt said it also rebalanced its DeFi fund to add Synthetix (SNX) and Smart Contract Platform Ex-Ethereum Fund to remove Algorand (ALGO).

An avalanche saw the token surge last month, rising 6.9% to $13.65, according to CoinGecko. But by Friday morning, it was trading at $11.56, down 15% from last month.

It’s worth noting that AVAX makes up only a small portion of Grayscale’s fund portfolio, which currently has $163 million in assets under management (AUM). As of Sept. 30, AVAX accounted for less than 1% of the fund’s assets, according to its latest quarterly report.

Now the fund includes 65% bitcoin31% Ethereum2% of Cardano ADA code for the network and 1% each ribbed Matic’s network Solana network SOL.

Grayscale has been tracking the CoinDesk Large Cap Select Index since July. The index, which was launched in April, tracks the market capitalization weighted performance of the “largest and most liquid digital assets”.

Around the same time, Grayscale began using the index, and after a regular quarterly review, the fund dumped Bitcoin Cash (BCH), Litecoin (LTC), Chainlink (LINK), Polkadot (DOT), and Uniswap (UNI).

It makes sense for Greyscale to use one CoinDesk Its fund index Both companies are owned by the Digital Currency Group. But DCG itself has come under scrutiny since November, when questions were raised about the solvency of its lending arm, Genesis.

Since then, DCG has faced intense scrutiny. Yesterday, the company closed its headquarters, wealth management department. The news, which I reported for the first time the informationOn the same day that Genesis, another DCG company, announced mass layoffs.

Earlier this week, Gemini co-founder Cameron Winklevoss shared an open letter accusing DCG CEO Barry Silbert of “bad stalling tactics.” Genesis is the company’s partner on its Gemini Earn product and has had $900 million in user funds locked on its platform since November.

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