Key Takeaways
- • Grayscale rebalanced its DeFi Fund (DEFG) and Smart Contract Fund (GSC) portfolios as of May 1, 2026, following first quarter 2026 index methodology reviews, with DEFG adding Ethena (ENA) and removing Aerodrome Finance (AERO).
- • DEFG Fund's updated allocation emphasizes blue-chip DeFi protocols: Uniswap (UNI) at 35.22%, Aave (AAVE) at 21.36%, and Ondo (ONDO) at 19.83%, with the newly added Ethena representing 13.59% of the portfolio.
- • GSC Fund shifted to a six-asset allocation across major smart contract platforms, with Ether (ETH) and Solana (SOL) comprising 59.83% of the portfolio combined, supplemented by positions in Cardano (ADA), Avalanche (AVAX), Hedera (HBAR), and Sui (SUI).
- • Both funds operate on a non-income generating structure that regularly distributes fund components to cover ongoing expenses, with rebalancing executed in accordance with CoinDesk index methodologies.
Summary
Grayscale Investments announced rebalancing adjustments to two of its flagship digital asset funds following their first quarter 2026 reviews, effective May 1, 2026. The Connecticut-based asset manager, which operates the world's largest digital asset-focused investment platform, modified the portfolio compositions of its Decentralized Finance Fund (DEFG, trading on OTCQB) and Smart Contract Fund (GSC) in alignment with their respective underlying index methodologies maintained by CoinDesk.
The DeFi Fund rebalancing involved a notable portfolio shift in which Grayscale sold Aerodrome Finance (AERO) alongside proportional reductions across other existing positions, deploying the proceeds to initiate or increase exposure to Ethena (ENA). The resulting DEFG portfolio reflects a concentrated allocation to established DeFi infrastructure, with Uniswap commanding the largest weighting at 35.22%, followed by Aave at 21.36% and Ondo at 19.83%. Ethena's new 13.59% allocation rounds out the top four holdings, with Curve (CRV) at 5.27% and Lido DAO (LDO) at 4.73% completing the six-asset composition.
The Smart Contract Fund underwent a broader rebalancing across its existing holdings, with adjustments made proportionally across all fund components. As of the close on May 1, the GSC Fund's allocation reflects a two-tier structure dominated by Ethereum (ETH) and Solana (SOL), representing 30.14% and 29.69% respectively. The fund maintains diversified exposure across additional smart contract platforms including Cardano (ADA) at 17.96%, Avalanche (AVAX) at 7.69%, Hedera (HBAR) at 7.41%, and Sui (SUI) at 7.11%.
Both funds operate under a non-income generating model, with regular distributions of fund components to cover ongoing operational expenses. The rebalancing methodology adheres to index governance protocols, with DEFG tracking the CoinDesk DeFi Select Index and GSC following the CoinDesk Smart Contract Platform Select Capped Index, ensuring systematic and transparent portfolio composition management aligned with institutional investment standards.
The DeFi Fund rebalancing involved a notable portfolio shift in which Grayscale sold Aerodrome Finance (AERO) alongside proportional reductions across other existing positions, deploying the proceeds to initiate or increase exposure to Ethena (ENA). The resulting DEFG portfolio reflects a concentrated allocation to established DeFi infrastructure, with Uniswap commanding the largest weighting at 35.22%, followed by Aave at 21.36% and Ondo at 19.83%. Ethena's new 13.59% allocation rounds out the top four holdings, with Curve (CRV) at 5.27% and Lido DAO (LDO) at 4.73% completing the six-asset composition.
The Smart Contract Fund underwent a broader rebalancing across its existing holdings, with adjustments made proportionally across all fund components. As of the close on May 1, the GSC Fund's allocation reflects a two-tier structure dominated by Ethereum (ETH) and Solana (SOL), representing 30.14% and 29.69% respectively. The fund maintains diversified exposure across additional smart contract platforms including Cardano (ADA) at 17.96%, Avalanche (AVAX) at 7.69%, Hedera (HBAR) at 7.41%, and Sui (SUI) at 7.11%.
Both funds operate under a non-income generating model, with regular distributions of fund components to cover ongoing operational expenses. The rebalancing methodology adheres to index governance protocols, with DEFG tracking the CoinDesk DeFi Select Index and GSC following the CoinDesk Smart Contract Platform Select Capped Index, ensuring systematic and transparent portfolio composition management aligned with institutional investment standards.
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