Grayscale Q3 2025: AI & DeFi Drive Portfolio Shift
- Grayscale boosts AI and DeFi focus with the addition of AERO and Story Protocol tokens.
- Aerodrome Finance (AERO) replaces MakerDAO, signaling a strategic shift to modern DeFi models.
- Story Protocol joins the AI fund, highlighting growing institutional interest in on-chain IP.
Grayscale has added AERO and Story Protocol to its portfolios in the Q3 2025 rebalance, highlighting a strategic shift toward AI and DeFi innovation. The inclusion signals growing institutional interest in decentralized infrastructure and AI-powered solutions, aligning with broader market trends driving the next wave of blockchain adoption and utility.
Smart Contracts, AI, and DeFi Shape Q3 Portfolio
Grayscale’s portfolio rebalancing for the third quarter of 2025 indicates that the company is putting strong emphasis on themes of DeFi, AI, and smart contracts. The update includes notable additions such as Aerodrome Finance (AERO) and Story (IP). This change highlights an increasing adoption of projects that blend innovation with practical blockchain utility.
In the DeFi segment, Aerodrome Finance is introduced, while MakerDAO (MKR) has been removed. This shift marks confidence in decentralized liquidity frameworks and in DeFi, where new models are created to address liquidity challenges and optimize asset movements. The introduction of Aerodrome is part of a wider trend of supporting protocols that integrate on-chain liquidity functionality with real-world asset policies.
The fact that Story joined the AI-oriented fund is also important. Story Protocol involves an intersection between AI technologies and blockchain. It specifically includes the tokenization of intellectual property. The addition of Story is a strong indication that AI integration with blockchain is gaining traction among institutional players who want to utilize decentralized AI infrastructure in the future.
The Smart Contract Fund is predominantly stable in allocations to Ethereum (ETH) and Solana (SOL), platforms that continue to be a central figure in smart contract functionality. Minor changes in this fund indicate the approach of Grayscale to have a varied portfolio of competitive ecosystems, including Cardano (ADA), Avalanche (AVAX), and Hedera (HBAR).
Regardless of these changes, Grayscale funds remain complex investment products that carry certain risks associated with volatility and regulatory compliance. They are not revenue-generating and may face huge price changes because of the rise and rapid development of the underlying technologies. Investors in such funds should consider the following factors while also acknowledging the potential benefits associated with frontier blockchain advancements.
Related: Altcoins Lead Q3 2025 Crypto Performance, Outpacing Bitcoin
Institutions Look Beyond Big Caps with Grayscale
Another important aspect highlighted by this rebalancing is Grayscale’s commitment to diversifying across the core pillars driving blockchain’s future. The strategic actions of the company show that the institutional crypto funds are no longer focusing on the large-cap cryptocurrencies but are actively entering the markets with a good technological base and growing market potential.
This redistribution is prompt because the industry is experiencing the growth of the use of AI-powered solutions in decentralized settings. AI combined with DeFi is likely to unlock efficiencies and introduce new financial products that traditional systems cannot provide.
Grayscale’s Q3 2025 portfolio changes show a focus on future growth and innovation rather than just following market trends. This reorganization reflects how institutions may approach digital assets, seeking projects that boost blockchain’s utility and economic potential.
