Grayscale DeFi fund makes Lido its no. 2 holding

The investment management company has had other DAO tokens in its DeFi fund before, with Uniswap’s UNI being a top asset


WindAwake/Shutterstock modified by Blockworks


Grayscale added lido to its DeFi fund for the first time since the product’s inception in July 2021.

The digital assets manager announced the change Friday. Lido (LDO) is now the no. 2 asset in the Grayscale DeFi fund, making up 19.04% of it. Uniswap (UNI) still reigns supreme accounting for 45.46% of the fund. 

Lido, a liquid staking service, also offers a token that’s meant to make staking on Ethereum cheaper. Lido staked ETH (stETH) is its most popular product and is the seventh biggest cryptocurrency, according to CoinGecko. STETH doing well has made LDO, the governance token associated with Lido, more attractive to investors. 

Grayscale officially included LDO at the end of the day on Thursday to follow its index provider, CoinDesk’s DeFi Select Index (DFX) Grayscale tweeted.

Loading Tweet..

All of CoinDesk’s indexes, including the DeFi index, are reviewed quarterly. If there are changes, they are implemented on the second business day of January, April, July and October. DFX specifically is “designed to measure the market capitalization weighted performance” of digital assets in the DeFi sector.

CoinDesk Indices told Blockworks that LDO met the market cap and liquidity requirements for DFX “for the first time in our April reconstitution.”

“That put LDO on a watchlist for addition and when it again qualified as part of our July reconstitution it was officially added,” CoinDesk Indices marketing head Kim Greenberg wrote in an email.

Chart by David Canellis

The Grayscale DeFi Fund looked pretty similar as of March 15, 2023, with the exception of the current inclusion of LDO. The fund back then still had Uniswap as its largest asset, though it made up 58% of it, a strong majority. 

And when the fund launched nearly two years ago, the three biggest assets were Uniswap, Aave, and Compound Finance (COMP). Over time, Synthetix (SNX) has gained more of a share. 

The DeFi fund is among Grayscale’s smallest products, with $3.1 million in assets under management. In comparison, its flagship product, the Grayscale Bitcoin Trust (GBTC), has over $18 billion in assets. 

The DeFi fund also hasn’t been doing too hot, down over 73% since its launch.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.


Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screen Shot 2024-05-16 at 14.53.45.png


Loss-versus-rebalancing (LVR) is arguably Ethereum DeFi’s biggest problem, and thus reducing LVR is fundamental to the success of Ethereum. This report dives into the world of LVR. We uncover its importance for AMM designers, discuss the two major mechanism design categories and various projects developing solutions, and offer a higher level perspective on the importance of AMMs in general.


The courts adjourned the trials against Binance and Tigran Gambaryan until May 22 and May 23


Industry players have started realizing high-performance computing-related revenues as they buy Nvidia GPUs and secure customer deals


Yesterday saw Congress’ upper chamber side with the House on a measure aimed at overturning SAB 121


Oklahoma’s new crypto bill will go into effect in November of this year


The deposits hit a $20 million cap in just 45 minutes


Twelve Democratic Senators voted in favor to pass the resolution Thursday