Grayscale Investments has completed its quarterly rebalancing of the fund, 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 regular quarterly rebalancing for its DeFi Fund, Smart Contract Fund and its Decentralized AI Fund. The changes took effect at the close of trading on July 3.
Every quarter, we rebalance and update the components of our multi-asset funds Grayscale DeFi Fund, Grayscale Smart Contract Fund, and Grayscale Decentralized AI Fund.
Read on for our Q3 updates 🧵 pic.twitter.com/dESsVwpq1j
— Grayscale (@Grayscale) July 7, 2025
As part of the update, the DeFi Fund added Ondo (ONDO) to its portfolio and financed the purchase by offloading small portions of its existing assets. ONDO now accounts for 18.22% of the fund. Uniswap (UNI) and Aave (AAVE) remain the largest holdings with 34.01% and 30.74%, while the rest is 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). Like the DeFi Fund, Grayscale sold some of its existing assets and used the money to buy HBAR and rebalance the other holdings. After the change, Ethereum (ETH) and Solana (SOL) remained the top two assets, with a weight of just over 30% each. Other tokens in the updated basket include Cardano (ADA), Sui (SUI) and Avalanche (AVAX).
The Decentralized AI Fund did not add or remove any tokens this quarter, but Grayscale has 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 bulk 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 crypto sector without having to purchase 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 adjusted periodically to keep abreast of market changes, but since they do not earn interest or dividends, Grayscale covers operating costs by occasionally selling small amounts of the fund’s assets, gradually reducing the number of tokens behind each share.
Meanwhile, Grayscale is also committed to launching new investment products, including the highly 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).
The GDLC ETF was initially approved and then postponed when the SEC announced a review of the decision on July 1, which indefinitely suspended the ETF’s listing while the commission investigates the approval and works to establish clearer guidelines for similar crypto investment products.