Grayscale Investments has reshuffled its Smart Contract Fund and made BNB its biggest position, overtaking both Ethereum and Solana. The change was disclosed on August 5 and took effect on August 3 as part of the firm’s second-quarter rebalance.

The update marks a notable shift inside one of Grayscale’s thematic crypto products. According to the firm, it sold portions of the fund’s existing holdings and used the proceeds to establish the new BNB allocation.

BNB moves to the top

After the rebalance, BNB accounts for 30.6% of the Smart Contract Fund. Ethereum now stands at 29.47%, while Solana is close behind at 29.15%.

In the prior rebalance, Ethereum had led the portfolio at 30.14%, with Solana at 29.69%. At that time, Cardano represented roughly 18% of the fund, making the latest changes a clear break from the previous lineup.

How the fund was adjusted

Grayscale said the portfolio changes were made by selling the fund’s existing components in proportion to their weightings and then using those proceeds to buy BNB.

Cardano saw the sharpest reduction among the named holdings, dropping from 17.96% in May to 4.88% in August. Hedera, Avalanche, and Sui were also cut back, with each of those positions now below 2.1%.

Fund strategy remains market-cap based

The Smart Contract Fund is designed to give investors exposure to major smart contract platforms through a market-cap-weighted portfolio, subject to a weighting cap. Grayscale reviews the product every quarter, and the August update reflects that regular process rather than a one-off change.

Within that framework, the new allocation places three assets very close together at the top, but with BNB now marginally ahead of Ethereum and Solana.

Other Grayscale funds were rebalanced as well

Grayscale also updated its DeFi Fund in the same quarterly review. Ondo rose from 19.83% to 25.44%, moving ahead of Aave to become the fund’s second-largest holding, while Uniswap remained the top position at 34.16% even after Grayscale sold some UNI.

The quarterly announcement covered three funds instead of two. Grayscale’s Decentralized AI Fund is now led by Near Protocol at 31.35%, followed by Bittensor at 29.15%, with Render and Filecoin listed among the other holdings.

The next confirmed step is the firm’s next quarterly review, which is when these allocations would be reassessed again under the fund’s stated methodology.

Source: beincrypto.com