Grayscale Investments Removes MATIC from GSCPxE Fund to Meet Investor Demand for Diversification

Grayscale Investments has announced adjustments to its fund components after Q2 of 2024. Grayscale Investments is the largest crypto assets manager in the world and controls various components, including GSCPxE, OTCOX: GDLC, and OTCQB: DEFG. After the second quarter review, they have updated fund component weights

Grayscale adjusts crypto fund components after Q2 review

Grayscale, the world’s largest crypto assets manager, has announced adjustments to its fund components following the second quarter review.

Grayscale announced the development through the CSI Market official page, reporting that,

“Grayscale Investments Rebalances Crypto Funds to Meet Investor Demand for Diversification: $GBTC Grayscale Investments Announces Rebalancing of Crypto Funds for Second Quarter 2024.”

According to the latest update, GDLC tokens remained largely unchanged with assets such as BTC, ETH, SOL, XRP, and AVAX enjoying weights of 70.46%, 23.51%, 3.86%, 1.54%, and 0.63%.

MATIC removed from Grayscale GSCPxE

Meanwhile, adjustments were made to the GSCPxE, based on the Coindesk Smart Contract Platform Select ex ETH Index. The adjustments saw Polygon (MATIC) being sold, while the earnings were used to purchase existing fund components, as per their weights.

As a result, MATIC was removed from the GSCPxE Fund. The adjustments were made to the prevailing market trends, while ensuring flexibility for each asset based on their weights.

Impact of adjustment on MATIC’s price

At press time, MATIC was trading at $0.4778 after hiking by 8.5% in 24 hours. At the same time, the market cap appreciated similarly to hit $4 billion on the charts.

On the contrary, trading volume fell by 39.74% to $292 million over the last 24 hours. This, on the back of the altcoin’s weekly price decline too.

Source: Coinglass

Equally, AMBCrypto’s analysis revealed that MATIC has been at the receiving end of a strong bearish trend.

For starters, our analysis of Coinglass suggested that MATIC has ridden through high liquidation levels. The last 6 days, especially, saw higher long position liquidations, with numbers such as $870k, $1.6M, and $1.5M seen consecutively.

High liquidations for long positions mean the prices decline was contrary to investors’ expectations, pushing them to close their positions.

Source: Tradingview

Finally, as far as the Directional Movement Index is concerned, the negative index (42) sat above the positive index at 7.6. When the DMI is set up in such a manner, it’s a bearish signal. Simply put, selling pressure seemed to outweigh demand on the charts.

Source: Santiment

Additionally, the DAA Divergence at -40.99 indicated that the price may be moving opposite the activity level. This could be a sign of weaker market interest, making the price direction unsustainable unless user activities climb.

Can MATIC still recover?

At the time of writing, MATIC appeared to be in a bearish trend, likely to continue until it breaks above its 200 MA. Thus, if the trend continues, the prices will decline to $0.42.

However, if gains on the daily charts are maintained, the market will see a trend reversal and climb to the next resistance level of around $0.5.

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