Grayscale Investments, the world’s largest platform focused on digital asset investments with over $35 billion in assets under management, has just updated the portfolios of three of its major crypto funds: the Grayscale Decentralized Finance (DeFi) Fund (DEFG), the Grayscale Smart Contract Fund (GSC), and the Grayscale Decentralized AI Fund (AI Fund), as part of their regular third-quarter 2025 review.

**What’s New in the Grayscale DeFi Fund (DEFG)**
The DEFG fund, which offers exposure to top decentralized finance projects, has made a key update. Grayscale removed MakerDAO (MKR) from the fund and added Aerodrome Finance (AERO) instead. This change aligns with the CoinDesk DeFi Select Index strategy. The rebalanced portfolio now includes:

– Uniswap (UNI): 32.32%
– Aave (AAVE): 28.07%
– Ondo (ONDO): 19.07%
– Lido (LDO): 7.02%
– Curve (CRV): 6.92%
– Aerodrome Finance (AERO): 6.60%

These assets were chosen for their market size, trading liquidity, and compliance with index standards. The fund aims to reflect the value of these holdings minus operational costs. However, it’s important to note that DEFG has not consistently matched its benchmark value and may trade at a premium or discount.

**Updates to the Smart Contract Fund (GSC)**
Grayscale’s GSC Fund focuses on leading smart contract platforms—blockchains that power decentralized apps and services. The portfolio was rebalanced by selling and reinvesting in existing components, following the CoinDesk Smart Contract Platform Select Capped Index. The latest asset allocation is:

– Solana (SOL): 30.97%
– Ethereum (ETH): 30.32%
– Cardano (ADA): 18.29%
– Avalanche (AVAX): 7.57%
– Sui (SUI): 7.35%
– Hedera (HBAR): 5.50%

These digital assets are selected based on liquidity and infrastructure strength. Note that smart contract technology is still evolving, and price swings can impact fund performance. GSC is not guaranteed to trade on public markets, so investors should plan for long-term holding.

**Changes in the Decentralized AI Fund (AI Fund)**
The AI Fund is designed for investors seeking exposure to decentralized AI technologies—projects working on open-source alternatives to centralized artificial intelligence systems. In this quarter’s update, Grayscale added Story Protocol (IP) to the fund by reallocating portions of existing assets. The new portfolio breakdown is:

– NEAR Protocol (NEAR): 25.81%
– Bittensor (TAO): 22.15%
– Story Protocol (IP): 21.53%
– Render (RENDER): 12.91%
– Filecoin (FIL): 11.39%
– The Graph (GRT): 6.21%

This fund aims to capture growth in decentralized AI and related infrastructure but comes with high volatility risks and no guarantee of market trading availability.

**Important Notes for Investors**
None of these funds generate income and they periodically sell parts of their holdings to cover operating costs, which means each share represents slightly less over time.

While Grayscale plans to list some of these funds on public markets, there’s no assurance regulators will approve this. Investors should be prepared to hold their shares indefinitely if necessary.

**About Grayscale Investments**
Founded in 2013, Grayscale Investments gives investors access to the digital asset ecosystem through a wide range of products—spanning single assets, diversified crypto funds, and thematic strategies like DeFi, smart contracts, and AI tech. The firm is a trusted name in digital finance and continues to lead the space with institutional-grade investment vehicles.

For more details on fund structures, index methodologies, or risk factors, visit grayscale.com or contact their team directly at info@grayscale.com or 866-775-0313.