Grayscale Boosts Cardano Allocation to 20.34% Amid Institutional Interest

Grayscale, a leading financial conglomerate, has made a significant move in its Smart Contract Fund by increasing its allocation of Cardano (ADA) to 20.34%. This makes ADA the third-largest asset in the fund, following Solana's native coin (SOL) and Ethereum (ETH). The addition of ADA to the fund is notable as it marks a growing institutional interest in Cardano.

The increase in allocation from 18.5% to 20.34% suggests that Grayscale is confident in ADA's potential for growth. This confidence is likely due to Cardano's expanding ecosystem, which includes its own DeFi setup and connections with other blockchains. Additionally, the newly onboarded LayerZero infrastructure provider for institutional-class crypto trading is expected to bring around $80 billion in omni-chain assets onto Cardano.

The Clarity Act, currently being discussed behind closed doors in Washington, DC, could have a significant impact on the crypto market. Institutional investors are awaiting the results of this act, which may lead to further growth or volatility in the market. As Grayscale continues to increase its allocation of ADA, it is likely that other institutional investors will follow suit.