TLDR
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Grayscale adds ONDO, drops DOT in major Q2 2025 crypto fund reshuffle.
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ONDO joins DeFi Fund at 18.22%, highlighting rising DeFi influence.
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HBAR replaces DOT in Smart Contract Fund amid growing platform appeal.
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AI Fund sticks with top 5 tokens, rebalances weights, no assets added.
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Quarterly rebalance boosts DeFi and AI exposure, trims underperformers.
Grayscale updated its crypto investment portfolios in Q2 2025, adding ONDO and removing DOT from key fund products. The rebalancing involved Grayscale’s DeFi Fund, Smart Contract Fund, and Decentralized AI Fund. Each change reflects adherence to index methodologies and aims to maintain diversified, cap-weighted exposure.
ONDO Gains Ground in Grayscale DeFi Fund Adjustment
Grayscale introduced ONDO into its DeFi Fund after completing a quarterly rebalance on July 3, 2025. The company sold existing fund components proportionally and used proceeds to buy ONDO, aligning with the CoinDesk DeFi Select Index. ONDO entered the fund with an 18.22% weighting, reflecting its growing relevance in the decentralized finance ecosystem.
Uniswap maintained its lead with 34.01%, followed by Aave with 30.74%, signaling continued dominance in DeFi protocols. Other assets in the updated basket included MakerDAO at 6.69%, Curve at 5.30%, and Lido at 5.04%. Grayscale adjusts this portfolio quarterly to reflect market cap dynamics and ensure compliance with index rules.
$ONDO currently makes up 18.22% of Grayscale’s $DEFG holdings 😈 https://t.co/EyWTXD4PCP
— NexGen Investor (@InvestorNexgen) July 7, 2025
The DeFi Fund does not generate income and periodically sells assets to cover costs, gradually reducing per-share value. This structural design matches its objective to track the CoinDesk DeFi Select Index net of expenses. ONDO’s inclusion underscores Grayscale’s strategy to diversify holdings while maintaining exposure to leading DeFi assets.
HBAR Replaces DOT in Smart Contract Fund Rebalancing
Grayscale removed Polkadot (DOT) and added Hedera (HBAR) to its Smart Contract Fund following Q2 2025 portfolio changes. The rebalance used proceeds from DOT and other components to proportionally acquire HBAR and existing fund tokens. The update aligns with the CoinDesk Smart Contract Platform Select Capped Index methodology.
The top holdings remain Ether at 30.22% and Solana at 29.87%, reflecting their strength in the smart contract sector. Cardano followed with 18.57%, while Sui held 8.78% and Avalanche stood at 6.76%. HBAR joined with a 5.80% weighting, enhancing platform diversity within the capped index structure.
Grayscale adjusts fund components quarterly, based on liquidity, custody, and classification standards. The Smart Contract Fund aims to offer broad exposure to scalable and high-utility blockchain platforms. The replacement of DOT signals shifting confidence in HBAR’s potential and relevance in smart contract development.
AI Fund Holds Position with Adjusted Crypto Allocations
Grayscale made proportional changes to its Decentralized AI Fund without adding or removing any specific asset in Q2 2025. The updated fund components on July 3, 2025, included Bittensor, NEAR Protocol, Render, Filecoin, and The Graph. Grayscale continues to use its own methodology to evaluate the fund each quarter.
Bittensor retained the highest share with 29.10%, followed closely by NEAR at 28.41%, showcasing leadership in decentralized AI frameworks. Render and Filecoin contributed 17.34% and 16.38% respectively, while The Graph held 8.77%. These holdings target critical infrastructure and protocols supporting decentralized artificial intelligence development.
This fund, like others, does not pay income and redistributes assets to cover costs, reducing total value per share over time. Grayscale’s approach aims to capture innovation while managing volatility and regulatory uncertainty. The consistent presence of these five assets shows confidence in their relevance across AI-linked decentralized systems.
