Grayscale Smart Contract Fund Makes BNB Largest Holding

Grayscale Investments has added BNB as the largest holding in its Smart Contract Fund, a move that places the token above Ethereum and Solana in the fund's portfolio. The change was part of the asset manager's second-quarter rebalancing, which was announced on August 5 and became effective as of market close on August 3. BNB entered the fund with a 30.6% weighting, slightly ahead of Ethereum at 29.47% and Solana at 29.15%.

To accommodate the new position, Grayscale sold portions of the fund's existing holdings in proportion to their weights, using the proceeds to purchase BNB. This rebalancing followed the methodology of the CoinDesk Smart Contract Platform Select Capped Index, which the fund tracks. The firm stated the adjustment was not a discretionary forecast on BNB's performance but a reflection of the index rules.

The addition of BNB resulted in significant reductions for several smaller holdings. Cardano's weighting saw the sharpest cut, falling from 17.96% in the first quarter to 4.88%. Holdings in Hedera, Avalanche, and Sui were also reduced, each now representing less than 2.1% of the fund. Ethereum and Solana's allocations saw only minor decreases from their previous...