Grayscale Investments has updated its crypto fund strategies as part of its Q2 2025 rebalancing. The firm made changes to its DeFi Fund and Smart Contract Fund, while also adjusting holdings within its Decentralized AI Fund.
Addition of ONDO to the DeFi Fund
In the DeFi Fund, Grayscale added Ondo (ONDO) for the first time, which now makes up 18.22% of the fund. This change was funded by trimming allocations from other assets like Uniswap (UNI) and Aave (AAVE), which continue to dominate at 34.01% and 30.74% respectively.
Replacing Polkadot with Hedera in Smart Contract Fund
Grayscale removed Polkadot (DOT) from the Smart Contract Fund and added Hedera (HBAR) in its place. This shift is part of a broader reallocation strategy that reflects changing developer momentum and ecosystem growth. Post-rebalancing, Ethereum (ETH) and Solana (SOL) continue to lead the fund with just over 30% allocation each.
Adjustments in the Decentralized AI Fund
Grayscale's Decentralized AI Fund did not add or remove any tokens this quarter. However, the company rebalanced asset weights to better align with its investment strategy. Bittensor (TAO) and NEAR Protocol (NEAR) now form the fund's largest positions.
Grayscale's fund updates reflect a dynamic market environment where strategic rebalancing helps align investors with innovation trends across DeFi, smart contracts, and AI-powered blockchain solutions.
