Grayscale Rebalances Funds: ONDO Joins UNI, AAVE, and MakerDAO at the Top
With the inclusion of ONDO in the DeFi Fund and the substitution of HBAR for DOT in the Smart Contract Fund, Grayscale Investments has finished its quarterly fund rebalancing. Grayscale Investments declared on July 7 that its DeFi Fund, Smart Contract Fund, and Decentralized AI Fund had finished their routine quarterly rebalancing. The modifications went into effect on July 3 at the close of business.
As part of the update, the DeFi Fund trimmed tiny sections of its current assets to finance the addition of Ondo to its portfolio. Currently, ONDO holds 18.22% of the fund. At 34.01% and 30.74%, respectively, Uniswap (UNI) and Aave (AAVE) continue to hold the greatest shares, with MakerDAO, Curve, and Lido receiving the remaining shares.
Hedera Replaces Polkadot as Grayscale Reshuffles Smart Contract Portfolio
Hedera (HBAR) took Polkadot’s spot in the Smart Contract Fund, which comprises prominent blockchain systems that facilitate decentralized applications. Like the DeFi Fund, Grayscale rebalanced its holdings by purchasing HBAR with the proceeds from the sale of some of its current assets. With weights of slightly more than 30% apiece, Ethereum (ETH) and Solana (SOL) continued to be the top two assets following the shift. Avalanche (AVAX), Sui (SUI), and Cardano (ADA) are more tokens in the revised basket.
In order to maintain the portfolio in accordance with its plan, Grayscale changed the size of each holding, although the Decentralized AI Fund did not add or remove any tokens this quarter. The fund is currently dominated by Bittensor (TAO) and NEAR Protocol (NEAR), with Render (RENDER), Filecoin (FIL), and The Graph (GRT) following closely behind.
Understanding Grayscale’s Model: Access to Crypto Sectors Without Direct Ownership
To clarify, these funds do not aim to generate returns in any way. Instead, they give investors access to a certain area of the cryptocurrency market without requiring them to purchase and handle individual coins. Investors can follow the general performance of industries like DeFi, smart contract platforms, or decentralized AI by owning shares in these funds.
Since the funds don’t pay interest or dividends, Grayscale pays for its operations by occasionally selling tiny quantities of the fund’s assets, which gradually lowers the number of tokens behind each share. The funds are periodically updated to keep up with market fluctuations.
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