Grayscale Adds Ethena to DeFi Fund as ENA Surges 4% Overnight

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• Grayscale replaced Aerodrome Finance with Ethena in its DeFi Fund rebalance.
  
• ENA token gained over 4% following the announcement.
  
• Ethereum and Solana remain dominant holdings in Grayscale’s Smart Contract Fund.

Grayscale Investments has updated its crypto fund allocations for the first quarter of 2026, signaling a stronger focus on decentralized finance projects tied to yield generation and tokenized assets. The biggest move came in the firm’s DeFi Fund, where Ethena replaced Aerodrome Finance during the latest portfolio rebalance.

The change immediately caught the market’s attention. Ethena’s native token, ENA, climbed more than 4% within 24 hours of the announcement, reflecting renewed investor interest in the protocol.

Ethena Enters Grayscale’s DeFi Portfolio

Grayscale said the rebalance followed the CoinDesk DeFi Select Index methodology. As part of the adjustment, the asset manager removed Aerodrome Finance (AERO) and increased exposure to existing holdings while adding Ethena (ENA).

Following the rebalance, the DeFi Fund allocations stood at:

• Uniswap (UNI) – 35.22%
• Aave (AAVE) – 21.36%
• Ondo (ONDO) – 19.83%
• Ethena (ENA) – 13.59%
• Curve (CRV) – 5.27%
• Lido DAO (LDO) – 4.73%

The addition of Ethena highlights growing institutional attention toward yield-focused DeFi protocols. Ethena has positioned itself around synthetic dollar products and on-chain yield opportunities, areas that continue to attract capital as stablecoin adoption expands.

Smart Contract Fund Remains Focused on Major Blockchains

Grayscale also updated the weightings of its Smart Contract Fund. Unlike the DeFi Fund, however, no new assets were introduced or removed.

The revised allocations include:

• Ethereum (ETH) – 30.14%
• Solana (SOL) – 29.69%
• Cardano (ADA) – 17.96%
• Avalanche (AVAX) – 7.69%
• Hedera (HBAR) – 7.41%
• Sui (SUI) – 7.11%

The updated structure shows Grayscale maintaining heavy exposure to large smart contract ecosystems, particularly Ethereum and Solana, which continue to dominate developer activity, liquidity, and institutional engagement.

What the Rebalance Means for Crypto Markets

Quarterly fund adjustments from major asset managers are closely watched because they often reveal where institutional sentiment is shifting.

Grayscale’s decision to add Ethena suggests growing confidence in DeFi sectors linked to stablecoins, real-world assets, and yield-bearing products rather than purely exchange-driven platforms.

At the same time, the firm’s continued preference for Ethereum and Solana indicates institutions are still prioritizing established blockchain networks with strong infrastructure and active ecosystems.

Whether broader capital flows follow these allocation changes remains uncertain, but the rebalance offers a snapshot of where institutional investors see long-term opportunity within crypto markets.

Also Read: Is the Bottom In? 3 Signs Ethena and Ethereum Are Ready to Flip Bullish

Grayscale’s latest portfolio update reinforces two major themes shaping crypto in 2026: the rise of yield-focused DeFi protocols and the continued dominance of leading smart contract networks. Ethena’s inclusion in the DeFi Fund gave ENA a short-term boost, but the bigger story may be what the move says about institutional appetite for next-generation DeFi products.

As crypto markets mature, fund reallocations like these could increasingly influence investor sentiment and sector momentum.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.