BNB tops Grayscale Smart Contract Fund at 30.6%

Grayscale Investments added BNB to its Smart Contract Fund during its second quarter review, placing the token above Ether and Solana in the portfolio as of Aug. 3. 

The U.S. asset manager assigned BNB a 30.6% weight, compared with 29.47% for Ether and 29.15% for Solana, according to its Aug. 5 release.

The change made BNB the largest component immediately after its addition. However, the rebalance followed the CoinDesk Smart Contract Platform Select Capped Index methodology. Grayscale did not describe the move as a discretionary forecast that BNB will outperform Ether or Solana.

BNB becomes the fund’s largest holding

To add BNB, Grayscale sold the fund’s existing components in proportion to their weights and used the proceeds to buy the token. The remaining allocations were Cardano at 4.88%, Hedera at 2.08%, Avalanche at 1.92% and Sui at 1.9%.

The change was large compared with the first quarter review. As of May 1, the fund held Ether at 30.14%, Solana at 29.69%, Cardano at 17.96%, Avalanche at 7.69%, Hedera at 7.41% and Sui at 7.11%. BNB was not part of that basket. Its addition left Ether and Solana close to their previous weights while sharply reducing the smaller holdings.

As previously reported in earlier fund rebalance coverage, Ether and Solana had led the Smart Contract Fund after its May review. Cardano was then the third largest holding, before BNB entered the basket.

Index rules matter more than a directional call

The Smart Contract Fund tracks a market capitalization weighted index with a cap on individual positions. Eligible assets must meet the index provider’s trading and custody requirements and fall within its smart contract platform classification. Grayscale said component weights change daily and are published around 4 p.m. New York time.

For that reason, the 30.6% BNB allocation is a dated portfolio snapshot rather than a fixed target. The fund is reviewed quarterly, while price movements can alter weights between formal reviews. Investors also cannot invest directly in the underlying index.

The product is separate from an exchange traded fund. Grayscale said it intends to seek secondary market quotation for GSC shares, but approval is uncertain.

Grayscale warned that there is “no guarantee” the shares will receive approval for secondary market quotation.

The manager also said the product is not registered under the Investment Company Act of 1940. Investors may therefore face different protections and liquidity conditions from those associated with registered mutual funds.

UNI and NEAR remain leaders after Grayscale’s sales

Grayscale also sold part of the DeFi Fund’s Uniswap position and redistributed the proceeds among existing components. Uniswap still ranked first at 34.16%, followed by Ondo at 25.44%, Aave at 19.97%, Ethena at 12.19%, Curve at 4.42% and Lido DAO at 3.82%.

The previous quarterly basket placed Uniswap at 35.22%, while Ondo held 19.83%. The latest weights therefore show a modest reduction for UNI and a larger share for ONDO. The first quarter review had added Ethena after removing Aerodrome Finance.

A similar pattern appeared in the Decentralized AI Fund. Grayscale sold NEAR and used the proceeds to purchase the remaining components proportionally, yet NEAR retained the largest weight at 31.35%. Bittensor followed at 29.15%, with Render at 21.59% and Filecoin at 17.91%.

The sale should not be read as a complete exit from NEAR. Grayscale’s published allocation confirms that the token remained nearly one third of the portfolio after the transaction. In related NEAR ETF filing coverage, Grayscale was also pursuing a separate U.S. product designed to hold NEAR directly, although that registration remained subject to regulatory review.

BNB’s inclusion adds to Grayscale’s U.S. product push

The fund rebalance comes while Grayscale is separately seeking approval for a spot BNB ETF. A June 3 SEC filing identified the proposed Nasdaq ticker as GBNB. The registration statement remained preliminary and said shares could not be sold until it became effective.

As crypto.news reported in Grayscale’s BNB ETF update, the amended filing listed BitGo as custodian and BNY Mellon as administrator and transfer agent. The document did not state a management fee or confirm whether staking would be used.

The Smart Contract Fund allocation and proposed ETF are different products. BNB’s inclusion in the multi asset fund does not amount to SEC approval for the separate GBNB registration.

What investors should watch next

Grayscale will continue adjusting the DeFi and Smart Contract funds under their respective index methodologies. The next formal review is expected after another quarter, although daily market moves may change the published weights before that review. Grayscale said all components and allocations remain subject to change.

Investors should also account for fund expenses. Grayscale said the DeFi and Smart Contract funds do not generate income and periodically distribute crypto components to cover ongoing costs. As a result, the amount of each asset represented by a fund share gradually declines over time.

The latest rebalance gives BNB the leading weight, but it does not guarantee stronger returns. Future adjustments will depend on asset prices, index eligibility, custody conditions and scheduled reviews. Grayscale did not publish verified market reaction data with the announcement, so the portfolio change alone cannot establish how traders valued the news.