Grayscale Investments has completed its quarterly fund rebalancing, with key changes including the addition of ONDO to the DeFi Fund and the replacement of DOT with HBAR in the Smart Contract Fund.
On July 7, Grayscale Investments announced that it had completed its regular quarterly rebalancing for its DeFi Fund, Smart Contract Fund, and its Decentralized AI Fund. The changes took effect at the end of trading on July 3.
As part of the update, the DeFi Fund added Ondo (ONDO) to its portfolio, funding the purchase by trimming small portions of its existing assets. ONDO now accounts for 18.22% of the fund. Uniswap (UNI) and Aave (AAVE) remain the largest holdings at 34.01% and 30.74%, with the rest allocated to MakerDAO, Curve, and Lido.
In the Smart Contract Fund, which includes major blockchain platforms that support decentralized applications, Polkadot (DOT) was removed and replaced with Hedera (HBAR). Similar to the DeFi Fund, Grayscale sold some of the existing assets and used the cash to buy HBAR and re-balance the other holdings. After the change, Ethereum (ETH) and Solana (SOL) remained the top two assets, with weights of just over 30% each. Other tokens in the updated basket include Cardano (ADA), Sui (SUI), and Avalanche (AVAX).
The Decentralized AI Fund didn’t add or remove any tokens this quarter, but Grayscale adjusted the size of each holding to keep the portfolio in line with its strategy. Bittensor (TAO) and NEAR Protocol (NEAR) now make up the largest share of the fund, followed by Render (RENDER), Filecoin (FIL), and The Graph (GRT).
To be clear, none of these funds generate income. Instead, they serve as a way for investors to gain exposure to a specific sector of crypto without having to buy and manage cryptocurrencies individually. By holding shares in these funds, investors can track the overall performance of sectors like DeFi, smart contract platforms, or decentralized AI.
The funds are periodically adjusted to stay up to date with market changes, but since they don’t earn interest or dividends, Grayscale covers its operating costs by occasionally selling small amounts of the fund’s assets, which gradually reduces the number of tokens behind each share.
Meanwhile, Grayscale is also advancing efforts to launch new investment products, including its much-anticipated Grayscale Digital Large Cap ETF, which includes the top five cryptocurrencies by market cap, namely Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA).Â
The GDLC ETF was initially approved and then delayed when the SEC announced a review of the decision on July 1, putting the ETF’s listing on hold indefinitely as the commission examines the approval and works to establish clearer guidelines for similar crypto investment products.
