Grayscale Updates: AERO and IP Join Q3 Portfolio, MKR Exits DeFi Fund

Summary: Grayscale Investments has revamped its multi-asset cryptocurrency funds for the third quarter of 2025. This includes adding Aerodrome Finance (AERO) and Story (IP) while removing MakerDAO (MKR). These adjustments reflect current trends in decentralized finance (DeFi), smart contracts, and AI technologies.

Key Takeaways

Grayscale adds Aerodrome Finance (AERO) and Story (IP) to its funds while removing MakerDAO (MKR).
The changes aim to align with Grayscale's index methodologies and market trends.
Adjustments impact three major funds: the Grayscale Decentralized Finance Fund, Smart Contract Fund, and the Decentralized AI Fund.
Investors are showing increased interest in liquidity-focused DeFi protocols and AI technologies.

Grayscale adds IP, AERO, removes MKR

Overview of the Fund Adjustments

Grayscale Investments has made significant changes to its multi-asset cryptocurrency funds for the third quarter of 2025. On October 3, the firm announced the addition of Aerodrome Finance (AERO) and Story (IP) to its portfolios, while MakerDAO (MKR) was removed. These modifications reflect the company's efforts to stay aligned with current index methodologies and acknowledge the evolving trends in decentralized finance (DeFi), smart contracts, and AI-related tokens.

According to data from Grayscale and CoinDesk Indices, this rebalancing impacts three of Grayscale’s flagship products: the Grayscale Decentralized Finance Fund (DeFi Fund), the Smart Contract Fund (SCF), and the Decentralized AI Fund. These funds are specifically designed to provide investors with diversified exposure to key segments of the ever-changing digital asset landscape.

New Additions to the Funds: AERO and IP

This quarter's most significant change occurred in the DeFi Fund, where the proceeds from the sale of MakerDAO were reallocated to Aerodrome Finance, a promising DeFi protocol based on Base. As a result, the DeFi Fund now includes prominent assets such as Uniswap (32.3%), Aave (28.1%), Ondo (19.1%), Lido (7.0%), Curve (6.9%), and Aerodrome (6.6%). This shift underscores investors' growing preference for protocols that emphasize liquidity and offer consistent yield opportunities.

In the Smart Contract Fund, the weighting for major cryptocurrencies such as Ethereum, Solana, Cardano, Avalanche, Sui, and Hedera was adjusted to meet balance requirements, while the core list of assets remained unchanged. The AI Fund has also been updated and now includes NEAR (25.8%), Bittensor (22.1%), Story (21.5%), Render (12.9%), Filecoin (11.4%), and The Graph (6.2%), complementing the addition of Story (IP), which focuses on narrative-driven AI content.

Insights on the Growth of DeFi and AI

The recent rebalancing signals a shift toward emerging ecosystems like Base, as well as the growth of AI-integrated web3 environments. The inclusion of AERO points to a rising interest in Base-based protocols, while adding IP reflects investor enthusiasm for AI-driven content and infrastructure networks.

Grayscale's regular updates aim to ensure transparency and adherence to underlying index methodologies. Each fund acts as a passive investment vehicle, adhering to strict compliance and reporting guidelines, ultimately providing investors with indirect access to burgeoning sectors of the blockchain industry.