Grayscale has adjusted its Digital Large Cap Fund and added Chainlink (LINK)
Chainlink now has 0.90% allocation to the Grayscale Large Cap Fund
LINK’s price experienced a knee-jerk reaction to the news posting a local high of $34.66
The Wall Street investment firm of Grayscale has announced the rebalancing of its Digital Large Cap Fund. According to the official announcement, Grayscale sold existing components ‘in proportion to their respective weightings and using the cash proceeds to purchase Chainlink (LINK) in accordance with the Fund’s construction criteria.’
To note is that the Grayscale Digital Large Cap Fund does not generate income and usually distributes Fund components to pay for its ongoing expenses. As a result, the amount of fund components in each share gradually decreases with time.
Chainlink Allocated 0.90% of the Digital Large Cap Fund
The digital large cap fund now has the following digital assets in the following weighted ratios.
Bitcoin (BTC) – 79.8%
Ethereum (ETH) – 17.5%
Bitcoin Cash (BCH) – 0.80%
Litecoin (LTC) – 1%
Chainlink (LINK) – 0.90%
Chainlink Experiences a Knee-Jerk Reaction to $34.66
Prior to the news of Grayscale’s rebalancing of its Digital Large Cap Fund to include Chainlink, the digital asset of LINK was defending the $32 support zone. LINK would go on to increase in value by roughly 8.3% within minutes to a local high of $34.66 before experiencing a dip back to the $32 support zone due to a crypto-wide dump.
At the time of writing, Chainlink (LINK) is trading at $32.70 in what looks like additional consolidation in an attempt to perhaps reclaim $33 in the hours to follow.
However, the crypto-market mood has turned bearish as a result of Bitcoin losing the $58k support level due to the aforementioned crypto-wide dump which saw BTC drop from the $59k price area to a local low of $57,500. If the King of Crypto can retake $58k, chances are that Chainlink would also return to bullish territory and possibly retest $34.66 in the near future.