Grayscale, the second-largest digital asset manager after BlackRock, has removed Cardano (ADA) from its Digital Large Cap Fund (GDLC). The development coincides with a steep decline in price after the asset…
Grayscale, the second-largest digital asset manager after BlackRock, has removed Cardano (ADA) from its Digital Large Cap Fund (GDLC). The development coincides with a steep decline in price after the asset dropped to its lowest price since late 2023 due to intense selling pressure that has seen ADA reach the most oversold level in history.
Data from Grayscale shows that ADA is no longer among the crypto assets offered under the GDLC product. Instead, the asset manager has replaced ADA with Binance Coin (BNB), now the fund’s third-largest asset with a 4.92% weighting.
Cardano was included in this fund in January 2025 after Grayscale dumped Avalanche. The tide has now shifted against ADA, following months of price weakness exacerbated by prevailing bearish sentiment across the crypto market.
The other assets in the fund include Bitcoin and Ethereum, with weights of 74% and 13%, respectively. The fund also holds XRP (4.26%) and Solana (2.62%).
Despite the adjustments, the fund has continued to perform poorly, with its NAV per share falling below $30 for the first time since October 2024. The drop comes at a time when crypto market performance has disappointed traders, leading to significant losses.
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Cardano has fallen to its lowest price since 2023 despite bullish sentiment by its founder, Charles Hoskinson, who said he would dump his luxury assets to buy ADA. At press time, ADA was trading at $0.27, down 16% in one week.
In addition to price, open interest has dropped, with Coinglass data showing it is at a 14-month low due to the unwinding of long positions. This further highlights a bearish outlook for the token.
Nevertheless, some analysts are bullish that the ADA price might recover after it reached its most oversold level in history. In most cases, extreme selling pressure leads to a price recovery when the market reaches exhaustion.
With crypto prices down and market sentiment turning negative, Cardano could continue to face bearish pressure in the near term until fresh demand emerges.
