Grayscale Investments, a leading crypto asset manager, has rebalanced four of its major investment funds for 2025. These changes impact the Grayscale Decentralized AI Fund (AI Fund), Decentralized Finance Fund (DeFi Fund), Digital Large Cap Fund (GDLC Fund), and Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund). The updates are based on the firm's Q4 2024 portfolio review. In its AI Fund, Grayscale sold off certain assets and added Livepeer (LPT) along with other tokens like NEAR Protocol, Render, Bittensor, Filecoin, and The Graph. These adjustments aim to diversify the fund’s exposure to decentralized AI technologies. For the DeFi Fund, Grayscale replaced Synthetix with Curve, resulting in a portfolio that now includes Uniswap, Aave, Lido, MakerDAO, and Curve. Uniswap remains the largest component, comprising 47.88% of the fund, while Curve accounts for 6.71%. The GDLC Fund also saw a notable shift, with Avalanche being replaced by Cardano. This fund now consists of Bitcoin, Ethereum, Solana, XRP, and Cardano. Bitcoin dominates with a 73.52% allocation, while Cardano holds just 1.44%. Grayscale's GSCPxE Fund underwent a rebalancing as well, with SUI being added to the mix. The revised portfolio includes Solana, Cardano, Avalanche, Sui, NEAR Protocol, and Polkadot. These updates are meant to align the funds with their respective strategies, ensuring they reflect market trends and opportunities. Grayscale emphasized that these funds do not generate income but instead regularly distribute assets to cover ongoing expenses. As a result, the total holdings of each fund decrease over time. The rebalancing process occurs quarterly, based on evaluations and performance assessments. In October 2024, the company announced it was considering 35 altcoins for potential inclusion in its products. Grayscale frequently updates its strategies, identifying promising cryptocurrencies, such as the top 20 assets expected to perform well in Q4 of the previous year. These adjustments signal Grayscale’s commitment to staying at the forefront of crypto investing , with its funds often viewed as benchmarks by the crypto community. The inclusion of assets like Livepeer and Curve highlights its focus on diversifying and strengthening its portfolios.
