Hold onto your hats, crypto fam! Grayscale just dropped their Q1 2025 rebalance for their multi-asset funds, and it’s a bit of a bombshell. The biggest head-turner? They’ve completely axed NEAR from the Grayscale Smart Contract Fund (GSC). Seriously, gone. What the actual…?!
Let’s break down the drama. The Grayscale Digital Large Cap Fund (GDLC) remains BTC-heavy at 79.59%, with ETH at a respectable 10.54%. XRP, SOL, and ADA are also hanging in there. The DeFi Fund (DEFG) is still leaning on UNI (42.75%) and AAVE (27.44%), proving the OG DeFi tokens still matter.
The real kicker is that GSC shuffle. Ethereum, Solana and Cardano are the big winners, snagging 30.92%, 29.05%, and 22.91% respectively. AVAX, SUI, and DOT are trying to get a seat at the table. And then…nothing for NEAR. Ouch.
The Decentralized AI Fund (AI Fund) is still heavily invested in NEAR (30.94%) alongside TAO, FIL, RENDER, and GRT. But let’s be real, the writing might be on the wall for NEAR across Grayscale’s portfolio.
Now, here’s a little knowledge drop for those just tuning in. Why do these rebalances matter?
Fund rebalancing is a standard practice. It involves adjusting asset allocations to maintain the desired risk profile and investment strategy. Funds like Grayscale’s don’t inherently generate income; instead, they periodically distribute holdings to cover operational costs.
This means your share of the fund gradually decreases over time. Rebalancing ensures that the fund makeup reflects its intended investment thesis, responding to market changes and performance.
Controversially, these funds aren’t designed for passive growth. Their primary role is to offer exposure to these assets, and the periodic selling of holdings is a crucial, though often overlooked, aspect.
Grayscale’s move with NEAR feels…pointed. Were they underwhelmed by its performance? Doubtful innovative edge? Or is this just a strategic shift? Regardless, it’s sending ripples through the market, and we’ll be watching closely.
