GDLC: Where's The Diversification?

SummaryGrayscale's Digital Large Cap fund is the company's only tradeable fund that has exposure to multiple cryptocurrency assets.Despite that, GDLC has exposure to just five coins and is more allocated to Bitcoin and Ethereum than an industry peer.GDLC's asset inclusion methodology is a big reason why the fund isn't putting more coins into the fund.With the continued failure of spot Bitcoin (BTC-USD) ETF applications, investor demand for Bitcoin exposure has been limited to a handful of options. The most notable of which, is probably the Grayscale investment trusts. Two of which have direct exposure to Bitcoin; pure play Grayscale Bitcoin Investment Trust (OTC:GBTC) and the Grayscale Digital Large Cap (OTCQX:GDLC) fund. The latter of which has exposure to more than one cryptocurrency asset. While GDLC has typically housed somewhere between eight and ten assets, fund shares currently only offer exposure to just five crypto assets: Asset Ticker Fund Allocation Bitcoin BTC-USD 63.50% Ethereum (ETH-USD) 31.24% Cardano (ADA-USD) 2.53% Solana (SOL-USD) 1.81% Avalanche (AVAX-USD) 0.92% Sources: Grayscale, CoinMarketCapAt a 63% fund allocation to Bitcoin, GDLC is tracking Bitcoin's dominance against proof of work coins as opposed to Bitcoin's dominance in the broad cryptocurrency market.BTC/ETH dominance (CoinMarketCap)Bitcoin's actual dominance against the entire crypto market is actually closer to 40%. Ethereum's is a ...