Grayscale Investments reshuffled its crypto fund lineup this week, with BNB vaulting to the top of the Smart Contract Fund. The change, effective August 3 and announced August 5, gives BNB a 30.6% weighting — pushing Ethereum and Solana out of the lead. The quarterly rebalance touched three funds: Smart Contract, DeFi, and Decentralized AI.
BNB's rise to the top
BNB now commands the largest slice of the Smart Contract Fund, a market-cap-weighted portfolio with a cap that gets rebalanced every three months. Ethereum dropped to 29.47% and Solana to 29.15%. Cardano took the biggest hit, its weight slashed from 17.96% to just 4.88%. Hedera, Avalanche, and Sui were each cut to below 2%.
The shift means BNB, the native token of the BNB Chain ecosystem, now carries more influence in the fund than the two largest smart-contract platforms by market cap. That's a notable change for a fund that had ETH or SOL at the top since its inception.
DeFi and AI shakeups
In the DeFi Fund, Ondo Finance's token rose from 19.83% to 25.44%, overtaking Aave to become the second-largest holding. Uniswap stayed in first place at 34.16%, even though the fund sold some of its UNI position. The Decentralized AI Fund now leads with Near Protocol at 31.35%, followed by Bittensor, Render, and Filecoin.
How the rebalance works
Grayscale's fund weights are determined by market capitalization, subject to a cap that prevents any single asset from dominating too heavily. The portfolio is rebalanced quarterly — meaning the next adjustment is due in roughly three months. The firm doesn't disclose exact cap thresholds, but the sharp cuts to Cardano and others suggest some assets hit the ceiling or fell out of favor relative to their market cap.
The timing isn't great for Cardano holders, who saw the token's weight drop by more than 13 percentage points. For BNB, it's a clear vote of confidence from one of the largest crypto asset managers.
