Institutional demand for DOT, AVAX and ATOM is on the rise, painting a bullish outlook


  • Grayscale Digital Large Cap Fund has added Polkadot and Avalanche as part of the quarterly rebalancing. 
  • AVAX, DOT and ATOM have joined Bitcoin, Ethereum and six other tokens in Grayscale's $480 million Digital Large Cap Fund. 
  • Proponents believe DOT, AVAX and ATOM prices could rally in response to the rising institutional demand. 

Grayscale Investments has rebalanced its portfolio to include Polkadot, Avalanche and Atom, among other digital assets in its $480 million Digital Large Cap Fund. Proponents believe the asset manager's move indicates rising institutional demand for DOT, AVAX and ATOM. 

Avalanche, Polkadot and Atom ready to breakout

Grayscale, a leader in digital currency investing, performs a quarterly balancing of its portfolio. The giant decided to add Polkadot (DOT), Avalanche (AVAX) and Atom (ATOM) to its Digital Large Cap Fund. 

The addition of DOT, AVAX and ATOM to the crypto investment giant's $480 million fund indicates rising institutional demand for cryptocurrencies. Grayscale added ATOM to its smart contract platform ex-Ethereum fund. 

The Digital Large Cap Fund has added AVAX and DOT without removing any assets from the existing portfolio. The fund was launched in 2018 and enabled users to gain exposure to the top 70% of the crypto market. AVAX and DOT's combined allocation in the fund is greater than 3%, while ATOM makes up 5% of the DeFi fund. 

Grayscale removed Sushi and Synthetix from its DeFi fund focused on smart contract networks as they failed to meet the market capitalization criteria. 

Institutional demand for AVAX, DOT and ATOM has climbed steadily and the digital assets are on track for a rally. 

@Ninjascalp, a crypto trader and analyst, believes Avalanche is currently undervalued and predicted a rally in the altcoin. @BenjaminCowen, a leading crypto analyst, believes Avalanche price is on track to hit the target of $100.


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