Grayscale Investments, one of the world’s largest digital currency asset managers, recently expanded its Smart Contract Fund. The fund now includes Ethereum, Solana, Cardano, Avalanche, Sui, Near, and Polkadot in its portfolio.
This expansion will provide accredited investors with diversified exposure across the leading platforms in the cryptocurrency market.
Fund Structure and Rebalancing Mechanism
The Grayscale Smart Contract Fund employs a market cap-weighted structure with a quarterly rebalancing schedule to maintain alignment with current market valuations.
According to the company’s announcement on X, each blockchain’s allocation within the fund is subject to a 30% cap during rebalancing periods. This method ensures that no single asset dominates the portfolio.
It allows investors to have a balanced exposure to the smart contract ecosystem while mitigating concentration risk. They can avoid the technical challenges of directly purchasing and securely storing cryptocurrencies. The fund reported a net asset value per share of $10.44 as of Feb 27, 2025.
Smart Contract Offerings
This expansion marks a shift from Grayscale’s previous approach to smart contract platform investments.
In 2022, it launched the Ex-Ethereum Fund but excluded Ethereum from its portfolio, focusing on other platforms like Cardano, Solana, and Avalanche.
The fund was weighted largely toward Cardano (24.63%) and Solana (24.27%). Platforms like Algorand and Stellar received smaller allocations. However, the current expansion now embraces Ethereum as a core component. It also maintains exposure to established alternatives like Cardano and Solana, alongside newer platforms like Sui.
Importance of Smart Contracts and Access Requirements
Smart contracts are foundational to blockchain innovation beyond simple transactions. These self-executing programs run on blockchain networks and automatically implement agreement terms when predefined conditions are met.
Michael Sonnenshein, CEO of Grayscale, stated,
“Smart contract technology is critical to the growth of the digital economy.”
The Smart Contract fund is only available to eligible accredited investors. Under SEC regulations, investors must meet certain financial requirements before they can invest.
This criteria includes an annual income of over $200,000 ($300,000 for couples) or a net worth above $1 million excluding primary residence. In addition, professional certification holders with Series 7, 65, or 82 licenses are also eligible.
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