Grayscale launched a suite of model portfolios for financial advisors Monday, with its Digital Assets Next Gen strategy assigning a 26.11 percent weighting to XRP—making XRP the second-largest asset in the Bitcoin-free portfolio.
Ether leads the Digital Assets Next Gen model with a 42.34 percent allocation. Solana follows with 21.09 percent. These three assets collectively account for approximately 89 percent of the total basket.
The Next Gen portfolio also includes Hyperliquid at 5.76 percent, whose Grayscale fund launched in June. Chainlink, Avalanche and Sui comprise the remaining smaller allocations.
Grayscale implements a 40 percent cap on any single asset within its model portfolios and rebalances weights every three months. Ether has already drifted past its 40 percent cap since the model's inception on July 27.
The model itself has posted a 30.69 percent net gain since launch, driven by strong August performance across five weeks of trading history.
However, the underlying funds within the Next Gen portfolio show significant losses. Six of the model's seven funds currently trade below their launch prices. The Grayscale XRP Trust ETF, specifically, sits 38.51 percent below its launch price. The trust sold $180 million in tokens during the first half of the year at a realized loss.
XRP trades near $1.42, up about 5 percent on the day, and ranks as the fifth-largest cryptocurrency by market value.
Laurie Katz, Grayscale's Global Head of Distribution, said the models provide convenience for advisors seeking to integrate digital assets into client portfolios without managing individual allocations.
Grayscale does not charge a separate fee for the model portfolios. The underlying Grayscale funds carry an average fee of 0.23 percent.
Grayscale introduced two other strategies alongside Next Gen: Digital Assets Core Plus, which features Bitcoin, Ether, Solana and Chainlink, and Digital Assets Leaders, targeting the five largest eligible assets.
