Grayscale Investments has introduced Binance Coin (BNB) as a replacement for Cardano (ADA) in its Grayscale CoinDesk Crypto 5 ETF (GDLC) as part of its quarterly rebalance. This move could notably boost the token’s adoption among institutional investors while it captures changes in market trends in large-cap digital assets.
Grayscale’s GDLC Crypto ETF Portfolio Includes BNB
The asset manager provided the update in an announcement on X. Grayscale indicated that the rebalance is in line with the CoinDesk Large Cap Select Index, which bases the composition of the funds on market capitalization and liquidity standards. The action places BNB alongside Bitcoin, Ethereum, Solana, and XRP in the firm’s multi-asset crypto ETF.
Grayscale also broke down the revised weightings for the crypto assets in the index, with Bitcoin accounting for 74.21%. Ether is behind with 13.34%, and the new entrant Binance Coin takes an allocation of 4.97%. XRP also makes up 4.68%, and Solana comprises of 2.80% in the portfolio.
The rebalance completely eliminates Cardano in the crypto ETF basket. This is the first time BNB is featured in the GDLC product. It is worth noting that Grayscale’s GDLC crypto ETF is the first major U.S. fund to provide institutional investors with exposure to the token, which has ties to the top crypto exchange, Binance.
Grayscale had already registered an S-1 with the SEC for its intended spot BNB ETF. It was the second company to submit an application for a BNB ETF after VanEck, another crypto asset manager.
Another significant boost for Binance Coin was the announcement by Swedish asset manager Virtune AB that it would launch a BNB ETF on Nasdaq Stockholm. This is a physically supported ETP that provides 1:1 exposure to BNB.
BNB Price After Inclusion
At the time of this writing, the BNB price has not shown any significant response to the announcement of its inclusion in the Grayscale crypto ETF. It is trading at about $767 as per TradingView data, with slight gains above the key support ranges.
According to the analysts, the Binance coin price has the potential to soar. In their view, the increasing bullishness is a hint from technical indicators, with $1000 the intended target.
Meanwhile, crypto traders are betting on what targets BNB can reach amid this move from Grayscale. According to Polymarket data, traders give an 81% chance that the BNB price will be at least $800 in February. Expectancies for higher targets are more conservative, though, as there is only a 37% and 35% chance of a rally to $900 and $1,000, respectively.
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