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AVAX value decreases by 2% after removing Greyscale Avalanche from large cap fund

In its most recent quarterly update, Grayscale announced fund rebalancing for the fourth quarter of 2022. As part of the rebalancing, Grayscale sold an amount of its Digital Large Cap Fund and disposed of its holdings of tokens, including avalanches Network token AVAX.

AVAX is down 2% after selling off over the past 24 hours. According to Grayscale, the sold-out AVAX tokens have been replaced by purchasing the existing fund components in proportion to their respective weights.

Purchased and existing tokens in Greyscale

The AVAX sale was only part of the CoinDesk Large Cap Select index and the Grayscale Digital Large Cap Fund. In its CoinDesk Smart Contract Platform Select Ex ETH Index and Grayscale Smart Contract Platform Ex-Ethereum To rebalance the fund portfolio, the company sold the native one Algorand-Token ALGO.

In his CoinDesk DeFi Select Index methodology fitted Grayscale with that portfolio of his DeFi fund and bought Synthetix (SNX)after selling some existing assets.

AVAX value decreases by 2% after removing Greyscale Avalanche from large cap fund, Crypto Trading News

The Grayscale portfolio fund now comprises 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 comprise 65.05% Uniswap (UNI)12.39% Aave (AAVE)8.15% MakerDAO (MKR)6.02% Synthetix (SNX), 4.58% Curve DAO Tokens (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-cap-weighted performance of “the largest and most liquid digital assets.”

During grayscale use of the index, quarterly scheduled rebalancing resulted in the dumping of Bitcoin Cash (BCH), Litecoin (LTC), Chainlink (LINK), Polka dot (DOT) and more Uniswap (UNI) purchases.

AVAX slips after Greyscale was deleted

Before the sale AVAX still sat in a $12 zone; However, after Grayscale dumped its holdings, AVAX token fell 2% to trade at $11.39 as of Friday morning.

AVAX has increased in value over the past few months. It’s gone from about $9 to $13. Notably, the Grayscale fund’s portfolio, which currently has assets under management (AUM) of $163 million, included only a small portion of AVAX tokens. As of Sept. 30, AVAX accounted for less than 1% of the company’s fund assets, according to its previous quarterly report.

There was no notable change at ALGO, which was also removed from the Grayscale portfolio fund. It fell from a range of $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.

AVAX value decreases by 2% after removing Greyscale Avalanche from large cap fund, Crypto Trading NewsAVAX price is moving sideways on the 4 hour chart. Source: AVAX/USD on TradingView

On the other hand, at the time of writing, AVAX seems to be gaining momentum higher as it has already formed a retracement; a reversal is likely. AVAX is currently trading at $11.73, down 0.8% in the last 24 hours, with a trading volume of $125 million over the same period.

Source: Crypto News Deutsch

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