Grayscale Reallocates Funds: Adds Aerodrome, Story to DeFi and AI Portfolios, Divests MakerDAO

The Event in Detail

Grayscale Investments completed the third-quarter 2025 rebalancing of its three multi-asset funds: the Grayscale Decentralized Finance (DeFi) Fund, the Grayscale Smart Contract Fund, and the Grayscale Decentralized AI Fund. These adjustments were finalized at the end of the day on October 3, 2025, and announced on October 8, 2025.

Within the DeFi Fund (DEFG), MakerDAO (MKR) was removed from the portfolio. Concurrently, Aerodrome Finance (AERO) was added and now represents 6.60% of the fund's components. Other significant holdings in the DeFi Fund include Uniswap (UNI) at 32.32%, Aave (AAVE) at 28.07%, and Ondo (ONDO) at 19.07%. The rebalancing was conducted in accordance with the CoinDesk DeFi Select Index methodology.

The Decentralized AI Fund (AI Fund) saw the inclusion of Story (IP), which now accounts for 21.53% of its assets. The largest components in the AI Fund are NEAR Protocol (NEAR) at 25.81%, followed by Bittensor (TAO) at 22.15%. Other assets include Render (RENDER) at 12.91%, Filecoin (FIL) at 11.39%, and The Graph (GRT) at 6.21%.

For the Smart Contract Fund (GSC Fund), updated weightings were announced, with Solana (SOL) holding 30.97% and Ether (ETH) at 30.32%. Additional components include Cardano (ADA) at 18.29%, Avalanche (AVAX) at 7.57%, Sui (SUI) at 7.35%, and Hedera (HBAR) at 5.50%.

As of September 30, 2025, Grayscale Investments reported approximately $35 billion in assets under management (AUM), solidifying its position as a prominent digital asset-focused investment platform.

Market Implications

The rebalancing actions by Grayscale Investments are expected to induce increased trading volume and potential price fluctuations for the directly affected tokens, notably Aerodrome Finance (AERO) and Story (IP), as well as MakerDAO (MKR). Grayscale's strategic allocations signal a notable institutional interest in specific sectors of the digital asset economy, primarily decentralized finance (DeFi) and artificial intelligence (AI) driven blockchain projects.

This institutional endorsement could influence broader investor sentiment and potentially direct additional capital into these emerging ecosystems. The shift from MakerDAO (MKR) to Aerodrome Finance (AERO) within the DeFi Fund suggests a prioritization of protocols demonstrating robust liquidity and established governance frameworks, while potentially reducing exposure to projects perceived as having declining user activity. The integration of Story (IP) into the AI Fund underscores a growing recognition of AI-driven blockchain solutions as a critical growth sector, capable of bridging decentralized infrastructure with machine learning capabilities.

Business Strategy and Investment Thesis

Grayscale's Q3 2025 fund rebalancing reflects a strategic pivot towards digital assets characterized by robust fundamentals, institutional-grade utility, and alignment with emergent technological frontiers. This approach emphasizes diversification and innovation within the rapidly evolving digital economy.

The firm's commitment to adapting its multi-asset portfolios to dynamic market conditions is evident through these adjustments. By prioritizing projects with demonstrated real-world utility, potential for institutional adoption, and technological innovation, Grayscale aims to position its funds to navigate both market volatility and regulatory uncertainty. The DeFi Fund's rebalancing specifically highlights a focus on protocols with proven liquidity and active ecosystems, indicating a mature investment perspective on the sector.

Furthermore, the targeted allocation within the Decentralized AI Fund towards assets like NEAR Protocol, Bittensor, and Story aims to capture innovation and computing demand at the intersection of AI and blockchain. This strategic positioning anticipates significant growth in a sector projected to expand as enterprises seek decentralized solutions for AI training and inference. Grayscale's selections provide investors with diversified exposure across DeFi, smart contracts, and AI-driven blockchain ecosystems, while concurrently mitigating risks associated with more speculative tokens.

Broader Context

Grayscale Investments, established in 2013, operates as the world's largest digital asset-focused investment platform, leveraging a decade of experience in the sector. The firm's quarterly rebalancing serves as a significant barometer for institutional sentiment within the cryptocurrency market.

These strategic allocations are consistent with broader macroeconomic tailwinds, including increased venture capital funding directed towards AI-native crypto projects and a trend towards clearer regulatory frameworks in key jurisdictions. The continuous evolution of the crypto market underscores that adaptability and innovation remain non-negotiable attributes for sustained growth and investor confidence.