Grayscale Shocks DeFi World: ENA In, AERO Out in Q1 Rebalance!

Grayscale adds <a href="https://investment-policy.com/ena-usd/">ENA</a> and removes AERO in Q1 fund rebalance

Grayscale Investments finished its first-quarter 2026 review of two of its funds: the Grayscale Decentralized Finance Fund and the Grayscale Smart Contract Fund.

Summary

  • Grayscale added ENA to its DeFi Fund after removing AERO in the latest quarterly rebalance.
  • UNI and AAVE remain the fund’s largest holdings, while ENA entered as fourth-largest component overall.
  • Smart Contract Fund kept ETH and SOL leading its basket, with ADA holding third place.

The recent update modified the investments within the DeFi Fund and rebalanced the Smart Contract Fund according to its current portfolio.

The DeFi Fund has updated its holdings, replacing Aerodrome Finance with Ethena. Grayscale Investments sold its AERO tokens, along with other assets in proportion to their existing amounts within the fund, and used the money to purchase ENA. This adjustment was made to align with the rules of the CoinDesk DeFi Select Index.

UNI and AAVE remain top holdings

Looking at our portfolio as of May 1st, I can tell you that Uniswap currently makes up the largest portion at 35.22%. Aave is also a significant holding at 21.36%, followed by Ondo at 19.83%. We’ve also allocated 13.59% to Ethena and have positions in Curve and Lido DAO at 5.27% and 4.73% respectively. Notably, Ethena has quickly become our fourth-largest holding.

The fund is now focusing more on areas like decentralized exchanges, lending platforms, tokenized assets, and systems for creating digital versions of traditional currencies. Ethena is recognized for its USDe, a digital currency designed to mimic the US dollar, and Ondo helps the fund invest in tokenized financial products.

According to Crypto.news, ENA is releasing 171.88 million tokens, valued at around $17.28 million. This represents 2.12% of its total released supply, and has made ENA a token to watch this week.

This supply event is different from Grayscale adjusting its portfolio. However, it adds to the reasons why traders are paying attention to ENA, especially since it was recently added to the DeFi Fund.

Smart Contract Fund keeps existing basket

Grayscale recently adjusted its Smart Contract Fund, but didn’t change which cryptocurrencies it holds. As of May 1st, the fund’s holdings were distributed as follows: 30.14% Ether, 29.69% Solana, 17.96% Cardano, 7.69% Avalanche, 7.41% Hedera, and 7.11% Sui.

The fund continued to focus on leading networks for decentralized apps and smart contracts. Ethereum and Solana were both heavily invested in, with roughly equal amounts, and Cardano represented the third-largest portion of the fund.

As we shared before, Grayscale updated its funds in the second quarter of 2025 by adding ONDO to its DeFi Fund and swapping Polkadot for HBAR in the Smart Contract Fund. This demonstrates how the fund manager adjusts its holdings to reflect changes in the underlying assets.

In February 2026, Grayscale introduced an ETF that allowed investors to directly hold Sui (SUI) and earn staking rewards, which were reflected in the ETF’s overall value, according to Crypto.news.

Grayscale also noted that its DeFi Fund and Smart Contract Fund don’t produce any income. To cover operating costs, both funds periodically distribute portions of their holdings, resulting in a gradual reduction of the cryptocurrency held per share.

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2026-05-07 12:24