Key Notes
- Grayscale has conducted a quarterly rebalancing of its smart contract fund.
- The fund now includes Ethereum, Cardano, Solana, and SUI.
- Grayscale is deepening its role in the industry with the push for mainstream ETF products.
Asset management firm Grayscale Investments has added more cryptocurrencies to its Smart Contract Fund. The fund now provides exposure to several cryptocurrencies, including Ethereum ETH $2 221 24h volatility: 0.0% Market cap: $267.63 B Vol. 24h: $15.89 B , Solana SOL $141.7 24h volatility: 3.7% Market cap: $71.76 B Vol. 24h: $3.75 B , Cardano ADA $0.66 24h volatility: 4.9% Market cap: $23.70 B Vol. 24h: $484.60 M , Avalanche AVAX $21.81 24h volatility: 1.3% Market cap: $9.02 B Vol. 24h: $269.96 M , Sui SUI $2.85 24h volatility: 0.3% Market cap: $9.01 B Vol. 24h: $638.02 M , Near NEAR $3.27 24h volatility: 6.0% Market cap: $3.89 B Vol. 24h: $191.26 M , and Polkadot DOT $4.69 24h volatility: 0.6% Market cap: $7.13 B Vol. 24h: $166.60 M . The Grayscale Smart Contract Fund offering is only available to eligible accredited investors.
Understanding the Grayscale Smart Contract Fund
According to its design, the Grayscale Smart Contract Fund is market-weighted and subject to quarterly rebalancing. It is also subject to a 30% cap upon each rebalance, making it almost impossible for any single token to dominate over others.
Grayscale Smart Contract Fund now includes Ethereum, Solana, Cardano, Avalanche, Sui, Near, and Polkadot. The Fund, which rebalances quarterly, is market cap-weighted and subject to a 30% cap upon each rebalance. #ethereum $SOL $ADA $AVAX $SUI $NEAR $DOT
Available to eligible… pic.twitter.com/NLpANn0cjZ
— Grayscale (@Grayscale) February 28, 2025
Grayscale described the Fund as “one of the first investment vehicles solely invested in and deriving value from the price of native tokens of emerging smart contract platforms.”
The Funds hold shares that reflect the fund’s assets, but the asset manager still reserves the right to add or take out any asset, depending on the need.
It offers investors security access while eliminating the challenges of directly buying, storing, and safekeeping digital currencies. The Fund has varying weightings for each of these cryptocurrencies.
Precisely, SOL weighs 31.3%, ETH 31.22%, ADA 18.23%, AVAX 7.26%, SUI 6.5%, NEAR 2.95% and DOT 2.54%.
The Net Asset Value (NAV) per share is currently at $10.44, with a modest 0.19% daily uptick. In addition, the total assets under management (AUM) also rest at $3,230,325.87, while the outstanding shares stand at 309,400.
Tough Competition Between SOL and ETH
It is worth acknowledging how SOL took the spotlight from the world’s largest altcoin, ETH, which has a slightly higher weight.
Before now, both assets have been in tough competition, and this rivalry consistently takes a new twist. Two weeks ago, Solana dusted Ethereum in DEX volume amid soaring adoption, showcasing how speed and low fees matter in the decentralized ecosystem.
Traders are more inclined to gravitate towards chains that offer better efficiency, and Solana is the right chain. Solana’s low transaction costs and high-speed service are attractions for most traders and developers.
Compared to Ethereum, whose fees are relatively high for small trades, Solana’s low fees have made it the top network for buying and selling memecoins.
Grayscale Files for Spot Polkadot ETF
Apart from this fund, Grayscale has joined other asset managers in seeking approval to list other crypto Exchange-Traded Products (ETPs). A few days ago, it put out its Polkadot ETF filing , expecting the SEC to greenlight the offering as it did with Bitcoin and Ethereum ETFs.
The likes of 21Shares already submitted similar applications with the regulator in January.
A general wave of new crypto ETF applications has flooded the SEC from several investment asset management firms. Grayscale is not left out, as it is actively expanding its crypto offerings and has now indicated an interest in launching ETFs tied to XRP, SOL, DOGE, ADA, LTC, and
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