Key Takeaways
- • Grayscale Investments removed Aerodrome Finance (AERO) entirely from its DeFi Fund during Q1 2026 rebalancing, eliminating a 5.36% position that was added in Q3 2025.
- • Ethena (ENA) entered the DeFi Fund at a 13.59% weight, becoming the fourth-largest holding and funded through proportional sales of AERO and other existing components.
- • Ondo (ONDO) recorded the largest weighting gain among retained holdings, increasing from 14.10% to 19.83% during the quarter.
- • Uniswap (UNI) remains the DeFi Fund's largest single holding but declined from 42.67% to 35.22%, while Aave (AAVE) fell from 26.23% to 21.36%.
- • In the Smart Contract Fund, Ethereum (ETH) reclaimed the top weighting at 30.14%, narrowly edging Solana (SOL) at 29.69%, reversing SOL's January leadership position.
Summary
Grayscale Investments completed its Q1 2026 quarterly rebalancing of its multi-asset cryptocurrency funds, implementing strategic shifts across its flagship DeFi and Smart Contract product lines. The asset manager removed Aerodrome Finance (AERO) entirely from its Decentralized Finance Fund, eliminating the token's 5.36% position less than one year after its addition during Q3 2025 rebalancing. To fund the removal and addition of new components, Grayscale sold AERO and proportionally reduced other existing holdings.
Ethena (ENA) emerged as the primary addition to the DeFi Fund, entering with a 13.59% allocation that positions it as the fund's fourth-largest component. The weighting reflects Grayscale's tactical repositioning within the decentralized finance sector. According to market reports, ENA experienced a 4% price increase following the announcement of its inclusion in the fund, suggesting positive market reception to the institutional endorsement.
Within the DeFi Fund's retained holdings, Ondo (ONDO) recorded the most significant weighting adjustment, climbing from 14.10% to 19.83%. However, Uniswap (UNI) continues to dominate the fund despite a material reduction from 42.67% to 35.22%, maintaining its position as the largest single holding. Aave (AAVE) also contracted, declining from 26.23% to 21.36%. The current DeFi Fund composition includes UNI, AAVE, ONDO, ENA, Curve (CRV), and Lido (LDO).
Grayscale's Smart Contract Fund exhibited a pronounced shift between its two largest components. Ethereum reclaimed the top position at 30.14%, marginally overtaking Solana which settled at 29.69%. This reversal represents a swing of approximately 1.14 percentage points for ETH, which had ceded the top spot to SOL in January. Cardano (ADA) retained its third-place position with a slight decline to 17%. Grayscale evaluates fund compositions quarterly in accordance with index methodologies established by its Index Provider, with holdings and weightings subject to ongoing adjustment.
Ethena (ENA) emerged as the primary addition to the DeFi Fund, entering with a 13.59% allocation that positions it as the fund's fourth-largest component. The weighting reflects Grayscale's tactical repositioning within the decentralized finance sector. According to market reports, ENA experienced a 4% price increase following the announcement of its inclusion in the fund, suggesting positive market reception to the institutional endorsement.
Within the DeFi Fund's retained holdings, Ondo (ONDO) recorded the most significant weighting adjustment, climbing from 14.10% to 19.83%. However, Uniswap (UNI) continues to dominate the fund despite a material reduction from 42.67% to 35.22%, maintaining its position as the largest single holding. Aave (AAVE) also contracted, declining from 26.23% to 21.36%. The current DeFi Fund composition includes UNI, AAVE, ONDO, ENA, Curve (CRV), and Lido (LDO).
Grayscale's Smart Contract Fund exhibited a pronounced shift between its two largest components. Ethereum reclaimed the top position at 30.14%, marginally overtaking Solana which settled at 29.69%. This reversal represents a swing of approximately 1.14 percentage points for ETH, which had ceded the top spot to SOL in January. Cardano (ADA) retained its third-place position with a slight decline to 17%. Grayscale evaluates fund compositions quarterly in accordance with index methodologies established by its Index Provider, with holdings and weightings subject to ongoing adjustment.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.