Key Takeaways
- • Grayscale sold Uniswap (UNI), its largest DEFG Fund holding at 34.16%, and redeployed the proceeds pro rata into the remaining DeFi components following its Q2 2026 review under the CoinDesk DeFi Select Index methodology.
- • GSC Fund sold existing components pro rata and used the proceeds to buy BNB, which had a 30.6% weighting as of August 3, 2026, making it the fund's largest holding.
- • AI Fund sold NEAR Protocol (31.35% weight) and reallocated the proceeds across TAO, RENDER and FIL, with Bittensor now at 29.15% after the rebalance was applied to existing weights.
- • Grayscale describes itself as the largest digital asset-focused asset manager by AUM as of June 30, 2026, a claim it qualifies with a footnote referencing public disclosures.
- • Both DEFG and GSC generate no income and distribute components to cover expenses, so the share count represented by each share declines over time.
Summary
Grayscale Investments, manager of the Grayscale Decentralized Finance Fund (OTCQB: DEFG), the Grayscale Smart Contract Fund (GSC Fund) and the Grayscale Decentralized AI Fund (AI Fund), announced on August 5, 2026 the updated component weightings for each product following their second quarter 2026 reviews, according to a GlobeNewswire release.
For DEFG Fund, the rebalance follows the CoinDesk DeFi Select Index methodology. Grayscale sold Uniswap (UNI) and used the proceeds to buy other existing components in proportion to their weightings. As of the close on August 3, 2026, the fund held Uniswap at 34.16%, Ondo (ONDO) at 25.44%, Aave (AAVE) at 19.97%, Ethena (ENA) at 12.19%, Curve (CRV) at 4.42% and Lido DAO (LDO) at 3.82%. Note that the press release lists the pre-adjustment weights, so post-trade weightings are not disclosed in the release.
GSC Fund was adjusted under the CoinDesk Smart Contract Platform Select Capped Index methodology. Existing components were sold pro rata and the proceeds were used to purchase BNB. Pre-adjustment weights as of August 3, 2026 were BNB 30.6%, Ether (ETH) 29.47%, Solana (SOL) 29.15%, Cardano (ADA) 4.88%, Hedera (HBAR) 2.08%, Avalanche (AVAX) 1.92% and Sui (SUI) 1.9%.
AI Fund, which is managed under Grayscale's own methodology rather than an external index, sold NEAR Protocol (NEAR), which carried a 31.35% weight, and reallocated proceeds to existing components in proportion to their weights. Its holdings at the August 3 close were NEAR at 31.35%, Bittensor (TAO) at 29.15%, Render (RENDER) at 21.59% and Filecoin (FIL) at 17.91%.
Grayscale notes that DEFG and GSC generate no income and regularly distribute components to pay ongoing expenses, so the quantity of components represented by each share declines over time. The firm also states that DEFG has not met its investment objective, as its OTCQB-quoted shares have at times traded at substantial premiums or discounts to net asset value. Grayscale further cautions that GSC and AI shares may never obtain secondary market quotation, pending regulatory considerations from the SEC and FINRA.
Grayscale describes itself as the largest digital asset-focused investment platform, citing AUM as of June 30, 2026, with more than 45 digital assets across over 35 investment products. The release is not an offer to sell securities.
For DEFG Fund, the rebalance follows the CoinDesk DeFi Select Index methodology. Grayscale sold Uniswap (UNI) and used the proceeds to buy other existing components in proportion to their weightings. As of the close on August 3, 2026, the fund held Uniswap at 34.16%, Ondo (ONDO) at 25.44%, Aave (AAVE) at 19.97%, Ethena (ENA) at 12.19%, Curve (CRV) at 4.42% and Lido DAO (LDO) at 3.82%. Note that the press release lists the pre-adjustment weights, so post-trade weightings are not disclosed in the release.
GSC Fund was adjusted under the CoinDesk Smart Contract Platform Select Capped Index methodology. Existing components were sold pro rata and the proceeds were used to purchase BNB. Pre-adjustment weights as of August 3, 2026 were BNB 30.6%, Ether (ETH) 29.47%, Solana (SOL) 29.15%, Cardano (ADA) 4.88%, Hedera (HBAR) 2.08%, Avalanche (AVAX) 1.92% and Sui (SUI) 1.9%.
AI Fund, which is managed under Grayscale's own methodology rather than an external index, sold NEAR Protocol (NEAR), which carried a 31.35% weight, and reallocated proceeds to existing components in proportion to their weights. Its holdings at the August 3 close were NEAR at 31.35%, Bittensor (TAO) at 29.15%, Render (RENDER) at 21.59% and Filecoin (FIL) at 17.91%.
Grayscale notes that DEFG and GSC generate no income and regularly distribute components to pay ongoing expenses, so the quantity of components represented by each share declines over time. The firm also states that DEFG has not met its investment objective, as its OTCQB-quoted shares have at times traded at substantial premiums or discounts to net asset value. Grayscale further cautions that GSC and AI shares may never obtain secondary market quotation, pending regulatory considerations from the SEC and FINRA.
Grayscale describes itself as the largest digital asset-focused investment platform, citing AUM as of June 30, 2026, with more than 45 digital assets across over 35 investment products. The release is not an offer to sell securities.
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