BNB Tops Grayscale's Smart Contract Fund as Binance Ecosystem Gains Momentum

Grayscale Investments has reshuffled its Smart Contract Fund and BNB (Binance native token) is now the largest holding, surpassing Ethereum and Solana. This change comes after a second-quarter portfolio review by Grayscale, which saw BNB's allocation increase to 30.6%. To accommodate this addition, the fund reduced its exposure to existing holdings, with Cardano seeing one of the biggest cuts.

The update in the Grayscale Smart Contract Fund reflects the growing institutional interest in Layer-1 blockchains and Binance Chain's rapid expansion over the past few months. BNB Chain has attracted developers and users through tokenized assets, decentralized finance (DeFi), and enterprise blockchain activity.

Grayscale also updated its DeFi Fund, reducing UNI exposure but keeping Uniswap as its largest holding. In addition, the Decentralized AI Fund reduced its exposure to NEAR Protocol, although it remains the largest holding with 31.35%.