tl;dr
Grayscale updated its crypto investment portfolios in Q2 2025 by adding ONDO to the DeFi Fund, which now holds ONDO at 18.22%, with Uniswap and Aave as the largest positions. Polkadot (DOT) was removed from the Smart Contract Fund and replaced by Hedera (HBAR) at 5.80%, alongside major holdings like...
Grayscale updated its crypto investment portfolios in Q2 2025, notably adding ONDO and removing DOT from key fund products. The rebalancing impacted Grayscale’s DeFi Fund, Smart Contract Fund, and Decentralized AI Fund, ensuring alignment with index methodologies and maintaining diversified, cap-weighted exposure.
In the DeFi Fund, ONDO was introduced following the quarterly rebalance on July 3, 2025. Grayscale sold existing fund components proportionally to purchase ONDO, which entered the fund with an 18.22% weighting. Uniswap led the portfolio at 34.01%, followed by Aave at 30.74%. Other assets included MakerDAO, Curve, and Lido. This quarterly adjustment reflects market cap dynamics and index compliance. The DeFi Fund does not generate income but sells assets to cover costs, which gradually reduces per-share value. ONDO’s inclusion highlights a strategic diversification within leading DeFi assets.
Polkadot (DOT) was removed and replaced by Hedera (HBAR) in the Smart Contract Fund. The rebalance redistributed proceeds from DOT and other components to proportionally acquire HBAR and maintain holdings such as Ether (30.22%) and Solana (29.87%). Cardano (18.57%), Sui (8.78%), and Avalanche (6.76%) also remained significant. HBAR joined with a 5.80% weighting to enhance diversity within the capped index framework. Adjustments consider liquidity, custody, and classification standards, reflecting growing confidence in HBAR’s smart contract potential.
The Decentralized AI Fund held steady in terms of asset inclusions but adjusted allocations proportionally. As of July 3, 2025, holdings included Bittensor (29.10%), NEAR Protocol (28.41%), Render (17.34%), Filecoin (16.38%), and The Graph (8.77%). These selections emphasize infrastructure supporting decentralized AI development. Like other funds, the AI Fund redistributes assets to cover costs, reducing value per share over time. This consistent lineup demonstrates Grayscale’s confidence in these protocols amidst innovation and regulatory uncertainty.