Grayscale Investments Releases Q3 Top 20 Crypto List, Drops $XRP and Cardano, Adds Avalanche and Morpho
Grayscale's Q3 crypto list is out, and it's a mixed bag, including Avalanche and Morpho, while excluding XRP and Cardano.
The investment giant has reshuffled its top 20 crypto list for the quarter, reflecting changes and emerging opportunities in the crypto landscape. What’s behind this continued exclusion despite recent developments?
XRP and ADA Left Out: Grayscale’s Surprising Exclusions from Q3 List
On Friday, Grayscale Investments released its latest Q3 list of top 20 crypto assets. The company removed Lido DAO (LDO) and Optimism (OP) from its roster, making room for new additions,
Avalanche (AVAX) and Morpho (MORPHO). At the same time, the investment giant has decided to maintain the exit of its prominent altcoins XRP and Cardano (ADA).
In particular, the omission of LDO and OP, as well as XRP and ADA, is surprising given their significant growth potential in light of recent developments.
Despite both $AVAX and OP being smart contract protocols, Grayscale found that the sector remained relatively stable, with little growth or decline.
The growing difficulty of ETFs for these assets adds another layer of curiosity to Grayscale's exit decision. According to Bloomberg analysts, the XRP and Litecoin ETFs have a 95% chance of approval.
It's also worth noting that Grayscale's Q3 crypto list arrives just before the SEC's expected decision on the spot Avalanche and Cardano ETFs, adding to the importance of timing.
The SEC’s decision, which was expected on July 13, was previously delayed by 45 days,
In response to the asset manager's crypto list release, the prices of XRP and ADA saw significant intra-day declines of 4.8% and 2.9%. Over the past month, the tokens have fallen significantly by 9% and 26%, respectively.
Grayscale includes 20 tokens in quarter 3.
Interestingly, Grayscale regularly releases crypto lists, revising its top 20 along with asset under consideration and other sector-specific reviews.
In particular, the manager uses a multi-dimensional approach to evaluate his preferred altcoins, monitor sector performance, and identify market trends.
Notably, Grayscale’s Q3 crypto list features 20 tokens, including newly added Morpho and Optimism.
Although Morpho has seen significant growth recently, the investment giant believes the token could outperform other major cryptoassets. Grayscale noted,
This past month, Morpho announced Morpho V2, designed to bring DeFi to traditional financial institutions. Grayscale Research is optimistic about the future of on-chain lending activity, and Morpho seems well positioned to potentially capture a meaningful share of that growth.
Other tokens in the list include Bitcoin, Ethereum, Solana, Hyperliquid, Sui, Chainlink, Avalanche, Uniswap, Aave, Bittensor, and more.