Grayscale Integrates Ethena Into DeFi Fund Following Q1 2026 Quarterly Rebalance

Table of Contents Grayscale has restructured two cryptocurrency investment vehicles following its quarterly assessment for Q1 2026, bringing Ethena into its decentralized finance portfolio. The rebalancing process eliminated Aerodrome Finance while recalibrating asset weightings according to CoinDesk index methodology. This strategic adjustment positions Ethena as a significant component within Grayscale’s DeFi investment strategy. Grayscale incorporated Ethena into the Grayscale Decentralized Finance Fund following the conclusion of its quarterly portfolio assessment. The investment manager divested its Aerodrome Finance position and reduced other holdings proportionally according to their current allocations. The resulting capital was then deployed to acquire ENA tokens. This portfolio adjustment adhered to the CoinDesk DeFi Select Index methodology, which provides quarterly guidance for the fund’s composition. Following the May 1, 2026 rebalancing, Grayscale assigned Ethena a 13.59% allocation. This positioning established ENA as the fourth-most significant asset within the DeFi portfolio. Ethena now sits alongside Uniswap, Aave, and Ondo in the fund’s top holdings. Uniswap commands the largest allocation at 35.22%, with Aave securing 21.36% of the portfolio. Ondo maintains a 19.83% weighting, positioning it immediately ahead of the newly added Ethena. Grayscale maintained Uniswap’s leadership position within its DeFi Fund throughout the rebalancing process. UNI tokens represent over one-third of the total portfolio. This substantial weighting reflects the asset’s critical role in providing decentralized exchange exposure for the fund. Aave sustained its position as the portfolio’s second-largest component, accounting for 21.36% of total holdings. The decentralized lending protocol maintained significant representation within the fund structure after the quarterly adjustment. Ondo secured the third position with its 19.83% allocation. Curve and Lido DAO round out the DeFi Fund’s current composition. Curve maintains a 5.27% weighting, while Lido DAO holds 4.73% of the portfolio. These smaller allocations provide diversification across lending protocols, decentralized exchanges, and liquid staking-related DeFi infrastructure. Grayscale simultaneously recalibrated the Grayscale Smart Contract Fund during its Q1 2026 review cycle. Unlike the DeFi Fund, this portfolio did not incorporate any new digital assets. Instead, the rebalancing involved selling and repurchasing existing components to align with target weightings. Ethereum emerged as the Smart Contract Fund’s dominant holding with a 30.14% allocation following the May 1 review. Solana claimed the second position with a nearly equivalent 29.69% weighting. Cardano secured third place, representing 17.96% of the fund’s total composition. Avalanche, Hedera, and Sui comprise the remainder of the smart contract portfolio. Avalanche maintains a 7.69% allocation, Hedera holds 7.41%, and Sui accounts for 7.11% of fund assets. According to Grayscale, both investment products operate without generating income and utilize underlying components to address operational expenses. Grayscale’s Q1 2026 quarterly review successfully integrated Ethena into its DeFi Fund while eliminating Aerodrome Finance from the portfolio. The assessment maintained the Smart Contract Fund’s focus on its established asset basket. Both products now operate with current allocations reflecting their respective CoinDesk index-based methodologies.