Grayscale's Q2 rebalance, effective August 3 and announced August 5, made BNB the largest holding in its Smart Contract Fund at 30.6%, pushing ETH to 29.47% and SOL to 29.15% while Cardano was cut sharply from 17.96% to 4.88% and several smaller tokens fell below 2.1%. The firm also reshaped its DeFi and Decentralized AI funds: Ondo climbed to 25.44% in the DeFi Fund while Uniswap was sold (UNI remains top at 34.16%), and NEAR now leads the AI Fund at 31.35%, highlighting meaningful fund flows, token performance shifts, and changing crypto/DeFi adoption.

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In Brief

BNB became the top holding in Grayscale's Smart Contract Fund at 30.6%.
The purchase demoted Ethereum and Solana and slashed Cardano's weight.
Grayscale also sold Uniswap and expanded its rebalance to three funds.

Grayscale Investments has named BNB (BNB) the largest holding in its Smart Contract Fund, handing the token a 30.6% weighting and pushing Ethereum (ETH) and Solana (SOL) out of the top spot.

The shift landed in the asset manager’s second-quarter rebalance, announced August 5 and effective August 3. Grayscale trimmed several existing holdings to fund the new position.

BNB Purchase Reshapes the Basket

The Smart Contract Fund aims to provide exposure to major Smart Contract Platforms through a market capitalization-weighted portfolio subject to a weightings cap. Grayscale reviews the basket every quarter and adjusts holdings in line with the index rules.

In the prior rebalance, ETH led at 30.14%, and SOL trailed closely at 29.69%. Cardano (ADA) sat third near 18%.

The Q2 review changed that. BNB entered at 30.6%, edging ETH to 29.47% and SOL to 29.15%. The two leaders barely moved, yet lost the top spot.

“Grayscale has adjusted GSC Fund’s portfolio by selling existing Fund Components in proportion to their respective weightings and using the cash proceeds to purchase BNB,” the disclosure read.

Cardano absorbed the sharpest cut. Its weight fell from 17.96% in May to 4.88% in August. Grayscale also slashed Hedera (HBAR), Avalanche (AVAX), and Sui (SUI), each now below 2.1%.

Grayscale Smart Contract Fund Q1 vs Q2 2026 Component Weightings. Source: BeInCrypto

Grayscale’s DeFi and AI Funds Also Shift

The rebalance also reshaped the Decentralized Finance (DeFi) Fund. Ondo (ONDO), a protocol built around tokenized real-world assets, climbed from 19.83% to 25.44%. That gain lifted it past Aave (AAVE) into the second-largest position.

Grayscale sold Uniswap (UNI), yet the token held the top spot at 34.16%. The firm spread the proceeds across the fund’s other components.

The quarterly update spanned three funds rather than two, up from its previous quarterly rebalance. Grayscale’s Decentralized AI Fund is now led by Near Protocol (NEAR) at 31.35%. Its other holdings include Bittensor (TAO) at 29.15%, Render (RENDER), and Filecoin (FIL).

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Read the article at BeInCrypto