Grayscale’s Strategic Rebalance: Cardano Now Trails ETH and SOL in GSC Fund

Grayscale just reshuffled the deck—and Cardano got dealt a weaker hand.

The New Pecking Order

In its latest quarterly rebalance, Grayscale Investments has repositioned its Digital Large Cap Fund. The move formally places Cardano (ADA) behind both Ethereum (ETH) and Solana (SOL) in the fund's weighting hierarchy. It’s a clear signal of where the asset manager sees sustained momentum—and where it doesn’t.

Reading the Tea Leaves

These rebalances aren't just administrative. They're a pulse check on institutional sentiment. Pushing ADA down the roster suggests a recalibration towards networks with heavier developer traction and clearer institutional adoption pathways. ETH maintains its fortress-like position, while SOL’s rise continues to mirror its blistering ecosystem growth.

The Ripple Effect

For fund investors, it means an automatic shift in exposure. Capital flows algorithmically to match the new weights, a quiet but powerful endorsement of the new ranking. It’s portfolio management by spreadsheet, where a few basis points of change can speak volumes about perceived long-term viability.

Grayscale’s move cuts through the hype, offering a cold, numbers-based snapshot of competitive standing. After all, in traditional finance, if you’re not growing, you’re just costing someone custody fees. The message is clear: in the race for institutional favor, it’s not enough to have a strong community—you need undeniable, deployable utility.

TLDR

• Cardano now holds an 18.55 percent share in the Grayscale Smart Contract Fund.
• Cardano ranks third in the fund behind Solana at 29.55% and Ethereum at 29%.
• Grayscale completed its Q4 2025 rebalance on January 6, 2026, based on its index methodology.
• The fund’s portfolio changes followed the CoinDesk Smart Contract Platform Select Capped Index.
• Cardano’s share in the fund has declined from its original 24.63 percent in March 2022.

Cardano has gained a higher position in the Grayscale Smart Contract Fund following the firm’s Q4 2025 portfolio rebalance, and the updated allocation places Cardano third in the fund with 18.55%, just behind Solana and Ethereum.

Grayscale disclosed these figures in its latest quarterly update after executing changes aligned with the CoinDesk Smart Contract Platform Select Capped Index. The rebalance took effect after the market closed on January 6, 2026.

Ethereum and Solana Lead Smart Contract Fund Allocation

Grayscale confirmed ethereum and Solana hold the top two spots in the Smart Contract Fund by market weight. Ethereum now accounts for 29% of the portfolio, while Solana leads slightly at 29.55%.

The firm reported the changes result from standard quarterly rebalancing practices guided by its index methodology. These adjustments involved selling portions of assets to meet the target weights for the new quarter.

“This process reflects ongoing alignment with our benchmark indices,” Grayscale stated in its update. It ensures proportional exposure to eligible assets based on their performance and eligibility.

Cardano Secures Third Spot with 18.55% Fund Allocation

Cardano emerged as the third-largest holding in the Grayscale Smart Contract Fund. The asset now commands an 18.55% share of the portfolio.

Its current weighting surpasses those of Sui, Avalanche, and Hedera, which hold 8.55%, 7.66%, and 6.69%, respectively. Grayscale noted the updates follow the methodology of the CoinDesk Smart Contract Platform Select Capped Index.

Grayscale included cardano in this fund during March 2022, when its initial allocation was 24.63%. Since then, Cardano’s weighting has gradually adjusted in line with quarterly reviews.

The ADA network activated smart contract capabilities in September 2021 through the Alonzo upgrade. That launch led to a price peak of $3.10 later the same year.

Developers continued refining the blockchain, introducing upgrades like the Vasil hard fork to improve contract execution. These enhancements helped maintain Cardano’s appeal in the broader smart contract ecosystem.

ADA Remains in Other Grayscale Products

Beyond the Smart Contract Fund, Cardano remains part of the Grayscale Digital Large Cap (GDLC) ETF. The asset continues to hold a position within the diversified large-cap fund.

Grayscale stated it follows a consistent rebalance methodology across all investment products. These periodic updates reflect market conditions and index alignment.

Grayscale is also pursuing the launch of a spot Cardano ETF, according to recent disclosures. The firm has not yet announced a timeline for regulatory approval or public release.