Cryptocurrency asset manager Grayscale Investments has increased its Cardano ($ADA) allocation in its fund offering investors exposure to smart contract blockchain networks while excluding Ethereum ($ETH).

As first spotted by CryptoCapitalVenture founder Dan Gambardello, Grayscale has raised its allocation to Cardano’s ADA on the Grayscale Smart Contract Platform ex Ethereum Fund (GSCPxE) to 32.33% per share, with each GSCPxE share now having 4.34 ADA in it.

The increased allocation to ADA led to a reduction in the fund’s exposure to other assets, which have seen their allocations slashed. Currently, the fund’s second-largest holding is Solana ($SOL), with a 21.3% allocation, down from 23.3% at launch.

Following Solana comes Polkadot ($DOT), with a 15.09% allocation down from 15.4% at launch, and it’s followed by Avalanche ($AVAX), with a 10.4% allocation, down from 18.4% when the fund was first launched in March.

According to Grayscale CEO Michael Sonneshein, the GSCPxE fund enables investors to bet on a variety of developing platforms instead of betting on one emerging as the primary venue for DeFi and decentralized applications. Other holdings in the fund include Polygon ($MATIC), Stellar ($XLM), Cosmos ($ATOM), and Algorand ($ALGO).

The fund’s holdings are weighted by market capitalization. Last year, Grayscale rebalanced its  Digital Large Cap Fund (GDLC) to add a new ADA component to it, allowing investors to get exposure to the cryptocurrency after it moved up over 1,000% in 12 months.

As CryptoGlobe reported, large investors managing approximately $200 billion worth of assets are moving away from the second-largest cryptocurrency Ethereum ($ETH) and are instead betting on three other altcoins: Cardano ($ADA), Polkadot ($DOT), and $XRP.

The crypto community has recently predicted that the price of Cardano’s native $ADA token will surpass the $1 mark by the end of June, after the implementation of the Vasil hard fork, which is set to deliver considerable improvements to the network.

The Vasil hard fork is a major upgrade that will involve four Cardano Improvement Proposals (CIPs). The hard fork has already seen ADA outperform numerous other cryptocurrencies, even amid a wider cryptocurrency market downturn exacerbated by the collapse of the Terra ecosystem. That performance saw ADA become the sixth-largest cryptoasset by market capitalization this week, surpassing $XRP.

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The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

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