Leading digital asset manager Grayscale has positioned Cardano (ADA) as a major component in the updated Grayscale Smart Contract Fund.
Grayscale disclosed this update in its latest report detailing the results of its quarterly rebalancing across digital asset investment products. Following its Q4 2025 review, the firm confirmed new component weightings for three funds, such as the Grayscale Smart Contract Fund, the Grayscale Decentralized Finance Fund, and the Grayscale Decentralized AI Fund.
Moreover, the firm clarified that the changes reflect routine portfolio adjustments executed in accordance with each fund’s underlying index methodology.
Cardano Secures Third-Largest Position
Following the rebalance completed at the close of trading on January 6, 2026, Cardano has emerged as the third-largest asset in the Grayscale Smart Contract Fund (GSC). The cryptocurrency now accounts for 18.55% of the portfolio.
Only Solana and Ethereum hold larger weightings, at 29.55% and 29%, respectively, making them the fund’s first- and second-largest assets. Nonetheless, Cardano’s allocation places it ahead of several other prominent smart contract platforms. Sui, Avalanche, and Hedera trail behind with weightings of 8.55%, 7.66%, and 6.69%, respectively.
According to Grayscale, the fund’s rebalance followed the methodology of the CoinDesk Smart Contract Platform Select Capped Index. This process involved proportionally selling existing holdings and reallocating capital to align the portfolio with updated target weightings across eligible assets.
Growing Confidence in Cardano’s Smart Contract Infrastructure
Cardano’s 18.55% weighting signals sustained confidence in its smart contract infrastructure. By ranking just behind Ethereum and Solana, ADA’s allocation underscores its position as one of the most established alternatives in the smart contract ecosystem, particularly for investors seeking diversified exposure beyond the two dominant platforms.
Although Cardano launched in 2017, the network waited four years before introducing smart contract functionality. The team delivered this milestone through the Alonzo hard fork in September 2021, a move that helped propel ADA to an all-time high of $3.10.
Since then, Cardano’s developers have rolled out additional upgrades, including the Vasil hard fork, to enhance smart contract efficiency and performance. While the network still trails Solana and Ethereum in overall adoption, it remains a major smart contract platform.
Cardano’s strong reputation in the sector led Grayscale to include ADA in the Grayscale Smart Contract (GSC) Fund in March 2022. At launch, Cardano carried a weighting of 24.63%, which has since declined to 18.55%.
Beyond the GSC Fund, Cardano remains a component of other Grayscale investment products, including the Digital Large Cap (GDLC) ETF. Additionally, the digital asset manager is actively pursuing the launch of a spot ETF for Cardano.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
