Grayscale's New Portfolio Excludes Bitcoin, Sets XRP at 26.11% in 'Next Gen' Strategy

Asset manager Grayscale has set a target allocation of 26.11% for XRP in its new investment model portfolio strategy called 'Next Gen,' which excludes Bitcoin. This is the second-highest allocation after Ethereum.

According to blockchain media CryptoPoltitan, Grayscale launched an integrated model portfolio product line on August 14, covering asset selection, weighting adjustments, diversification, and rebalancing. The products are offered through a financial platform for advisory firms to use at their discretion in actual investments.

The product line consists of four strategies: Core Plus, Leaders, Next Gen, and Infrastructure. Each strategy applies market capitalization weighting and rebalances quarterly.

Next Gen focuses on digital assets excluding Bitcoin. As of August 31, XRP Trust ETF (GXRP) was allocated 26.11%. Grayscale Ethereum Staking Mini ETF held the highest at 42.34%, followed by Solana Staking ETF at 21.09%, Hyperliquid Staking ETF at 5.76%, Chainlink Trust ETF at 2.66%, Avalanche Staking ETF at 1.08%, and Sui Staking ETF at 0.96%.

Sector-wise, XRP accounted for 26.11% of the 'Currency' sector, while Smart Contract Platforms made up 65.47%. The strategy showed a return of 30.69% since inception, though long-term performance has not been disclosed.

In the 'Leaders' strategy, which includes Bitcoin, XRP's allocation was lower at 11.92%. This strategy tracks the top five assets from Grayscale's listed ETPs. Ethereum led with 38.57%, followed by Bitcoin at 37.25%, making up over three-quarters of the portfolio. XRP ranked third, with Solana at 9.63% and Hyperliquid at 2.63%.

Comparing both strategies, XRP's allocation in Next Gen is more than double that in Leaders, highlighting how Bitcoin inclusion affects XRP's weight in portfolios.