Grayscale’s Q2 Fund Shuffle: Polkadot Booted, Hedera Waltzes In, ONDO Grabs a Seat!

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Grayscale Investments, never one to shy away from a bit of good old-fashioned portfolio spring cleaning (even if it’s the wrong season entirely), has performed its regular quarterly re-jigging of assets, and by Jove, things are looking positively shuffled! Highlights include ONDO making its debutante’s curtsey in the DeFi Fund, and Hedera (HBAR) elbowing Polkadot (DOT) straight off the stage in the Smart Contract Fund. Polkadot, kindly see yourself to the door, and don’t let the blockchain hit you on the way out! 💁‍♂️

On a sun-dappled July 7, Grayscale announced it had completed the ritualistic fund shuffle for the DeFi Fund, Smart Contract Fund, and Decentralized AI Fund. The magic happened at the end of trading on July 3—presumably after an afternoon of biscuits and strenuous spreadsheet wrangling.

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 🧵

— Grayscale (@Grayscale) July 7, 2025

The DeFi Fund, keen to show ONDO a warm and slightly awkward welcome, snipped little bits from its existing bag of tokens and ended up with ONDO representing a robust 18.22% of the whole shebang. The seasoned veterans, Uniswap (UNI) and Aave (AAVE), continue their plucky domination at 34.01% and 30.74%. The rest? Oh, they’re off having tea: MakerDAO, Curve, and Lido politely occupying whatever’s left.

In the glitzier Smart Contract Fund—think of it as the crypto equivalent of a country club—Polkadot (DOT) found its membership rather unceremoniously revoked, making way for Hedera (HBAR), who arrived with a dreary sigh and a shiny new tie. Grayscale funded the buy with the classic technique: a spot of judicious selling here, a dab of rebalancing there. In the aftermath, Ethereum (ETH) and Solana (SOL) continued to sashay about with over 30% each, while Cardano (ADA), Sui (SUI), and Avalanche (AVAX) played supporting roles and generally kept out of trouble.

And the Decentralized AI Fund? No excitement there—no newcomers nor dramatic bootings this time. They simply shuffled the proportions of Bittensor (TAO), NEAR Protocol (NEAR), Render (RENDER), Filecoin (FIL), and The Graph (GRT), presumably after consulting their favorite Ouija board.
TAO and NEAR are still swinging the heaviest bats, with the rest pitching in where they can.

If you were hoping for a dividend or some of that “income” stuff, well, stiff upper lip and all that—these funds aren’t designed to pad your pocket, my dear. Rather, they’re a cunning ploy to let the armchair crypto enthusiast track whichever sector gives them the happiest goosebumps: DeFi, smart contract platforms, or decentralized AI. No faffing around with wallets, just perfectly respectable exposure with a side of regular asset whittling. ✂️

The funds are periodically adjusted to keep pace with the crypto rats’ race, and because nothing is truly free, Grayscale ensures the lights stay on by trimming the asset pile, ever so discreetly, thus diluting the tokens behind each share, like adding water to Uncle Percy’s whisky.

Meanwhile, there’s feverish gentlepersons’ excitement about the next big thing: the Grayscale Digital Large Cap ETF. This glamour puss is to include the top five cryptos by market cap—Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA). A veritable who’s-who of cryptocurrency brawn! 

Of course, if you thought it would all go through without a hurdle or twelve, you underestimate the capacity for bureaucracy to grind all things to a halt. The ETF, having been initially approved, found itself rather brusquely nudged to the waiting room as the SEC decided to have another ponder, indefinitely, like an absentminded professor hunting for his misplaced spectacles. Regulations, you know—they do so love a twist ending. 🎩

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2025-07-08 15:33