BNB Overtakes Ether and Solana in Grayscale Smart Contract Fund

The reallocation required Grayscale to trim existing positions across the fund, significantly impacting smaller holdings. Cardano, which previously claimed a substantial 17.96% share in May, was reduced to 4.88%. Similarly, allocations for Hedera, Avalanche, and Sui were scaled back to 2.08%, 1.92%, and 1.9% respectively to accommodate the entry of BNB. These adjustments follow the CoinDesk Smart Contract Platform Select Capped Index methodology rather than discretionary market forecasting.

While the new weighting positions BNB as the primary component, the fund’s composition remains fluid. Grayscale operates these funds under quarterly review cycles, though daily market price fluctuations dictate real-time weightings. The firm explicitly noted that this index-based rebalancing should not be interpreted as a directional bet on BNB’s performance relative to Ether or Solana. Furthermore, the fund is not an exchange-traded product; Grayscale continues to seek secondary market quotation for GSC shares, a process that remains subject to uncertain regulatory approval.

Beyond the Smart Contract Fund, Grayscale executed parallel rebalancing moves in its DeFi and Decentralized AI funds. Uniswap remains the largest holding in the DeFi portfolio at 34.16% despite a partial liquidation, while NEAR maintains its lead in the AI fund at 31.35% following similar sales. These moves coincide with Grayscale’s broader push for a spot BNB ETF, for which the firm filed a preliminary registration with the SEC in June. Investors are cautioned that the inclusion of BNB in this multi-asset fund does not indicate progress or impending approval for the separate GBNB exchange-traded product.