Key Highlights
- Grayscale incorporates Ethena into DeFi Fund following Q1 2026 portfolio assessment
- Aerodrome Finance removed as Ethena secures position in DeFi basket
- Uniswap, Aave, and Ondo maintain dominant positions in revised DeFi Fund
- Ether and Solana preserve leadership in Grayscale Smart Contract Fund
- Quarterly rebalancing adjusts allocation percentages for DeFi and Smart Contract portfolios
Following its quarterly portfolio assessment for Q1 2026, Grayscale has modified two of its cryptocurrency investment vehicles, introducing Ethena to its DeFi Fund. The restructuring eliminated Aerodrome Finance from the portfolio and recalibrated asset allocations according to CoinDesk index methodologies. This adjustment establishes Ethena’s presence within Grayscale’s decentralized finance investment product.
Ethena Joins Grayscale’s DeFi Investment Vehicle
Grayscale incorporated Ethena into the Grayscale Decentralized Finance Fund following the completion of its routine quarterly assessment. The investment firm divested its Aerodrome Finance position and reduced proportional holdings across other assets. The proceeds from these transactions were allocated to purchase ENA tokens.
This portfolio modification adhered to the CoinDesk DeFi Select Index methodology, which determines the fund’s quarterly asset composition. Following the May 1, 2026 rebalancing, Grayscale assigned Ethena a 13.59% allocation. This positioning established ENA as the fourth-most significant holding within the DeFi Fund.
Ethena now participates in a portfolio dominated by Uniswap, Aave, and Ondo. Uniswap commands the highest allocation at 35.22%, with Aave securing 21.36%. Ondo maintains a 19.83% weighting, positioning it directly above Ethena in the fund hierarchy.
Uniswap, Aave and Ondo Command DeFi Portfolio
Grayscale preserved Uniswap’s position as the primary holding in its DeFi Fund throughout the review process. UNI represents over one-third of the total portfolio composition. This substantial weighting reflects its critical role in the fund’s decentralized exchange strategy.
Aave sustained its position as the second-largest component, representing 21.36% of the portfolio. The lending protocol maintained significant influence within the fund following the quarterly adjustment. Ondo secured third place with a 19.83% allocation.
Curve and Lido DAO comprise the remaining holdings in the DeFi Fund’s updated structure. Curve accounts for 5.27%, while Lido DAO represents 4.73%. These smaller allocations provide balance to the larger weightings across lending platforms, decentralized exchanges, and staking-related DeFi protocols.
Ether and Solana Maintain Smart Contract Fund Leadership
Grayscale simultaneously modified the Grayscale Smart Contract Fund following its Q1 2026 assessment. The fund introduced no new assets during this revision cycle. Instead, the firm executed trades among existing portfolio components to align with updated weightings.
Ether commands the Smart Contract Fund with a 30.14% allocation following the May 1 assessment. Solana maintains a close second position with a 29.69% weighting. Cardano captures third place, representing 17.96% of the fund’s composition.
Avalanche, Hedera, and Sui constitute the remaining smart contract portfolio allocations. Avalanche maintains 7.69%, Hedera holds 7.41%, and Sui represents 7.11%. Grayscale noted that neither fund generates investment income and utilizes underlying components to address operational expenses.
Grayscale’s Q1 2026 assessment integrated Ethena into its DeFi Fund while eliminating Aerodrome Finance. The revision maintained the Smart Contract Fund’s concentration on its established asset selection. Both investment products now reflect their most recent CoinDesk index-derived allocation structures.
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