Grayscale Updates AI, DeFi, and Crypto Funds for Q1 2025

Grayscale Investments, a leading asset management firm, has updated the portfolios of four of its crypto investment funds.

The changes were made to the Grayscale Decentralized AI Fund (AI Fund), Grayscale Decentralized Finance Fund (DeFi Fund), Grayscale Digital Large Cap Fund (GDLC Fund), and Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund). 

Grayscale Adjusts Portfolio

According to Grayscale, the updates reflect the firm’s Q4 2024 reviews. 

“We rebalanced and updated the components of our 4 multi-asset funds, Grayscale Decentralized AI Fund, DEFG, GDLC, and Grayscale Smart Contract Platform Ex-Ethereum Fund,” Grayscale said in a tweet on January 9.

The readjustments are important because the community often views Grayscale’s funds as a reference point for building their portfolios.

For the AI Fund, Grayscale has rebalanced the portfolio by selling off existing assets and using the proceeds to purchase Livepeer and other coins. This adjustment adds LPT to the portfolio, which also includes NEAR Protocol, Render, Bittensor, Filecoin, and The Graph. 

Similarly, Grayscale’s DeFi Fund saw a rebalancing, with Synthetix sold and Curve added. The updated portfolio now features assets such as Uniswap, Aave, Lido, MakerDAO, and Curve. Uniswap accounts for about 47.88% of the fund, while Curve makes up 6.71%.

The Digital Large Cap Fund (GDLC) also experienced a shift. Grayscale sold Avalanche and used the funds to purchase Cardano. The fund now holds Bitcoin, Ethereum, Solana, XRP, and Cardano. Bitcoin makes up the majority of the fund, with a 73.52% weightage, whereas Cardano accounts for only 1.44% of the fund.

Lastly, the GSCPxE Fund was also rebalanced, and SUI was added to replace some existing cryptocurrencies. The new structure includes Solana, Cardano, Avalanche, Sui, NEAR Protocol, and Polkadot.

Grayscale said the rebalances were made to ensure the funds remained in line with their respective strategies. Depending on the evaluation results, the changes are made every quarter.

However, the firm added that these funds do not generate income.

“None of AI Fund, DEFG, GDLC, or GSCPxE Fund generate any income, and all regularly distribute Fund Components to pay for ongoing expenses. Therefore, the amount of Fund Components represented by shares of each fund gradually decreases over time,” Grayscale added.

Moreover, in October 2024, Grayscale said it was considering 35 altcoins for inclusion in future investment products. The firm updated its investment strategy in September last year as well, as it identified the top 20 cryptos expected to give gains in Q4.