GSR increased Bitcoin's allocation in its Core3 model portfolio on August 5 as trading activity slowed and volatility eased across Bitcoin, Ether and Solana. According to reports from GSR, the latest Core3 model portfolio assigned 44.1% to Ether, 36.5% to Solana and 19.3% to Bitcoin. The weights total 99.9% because GSR rounds each allocation. This represents a significant shift from GSR's July 15 allocation when the model held 53.1% in Ether, 37.6% in Solana and only 9.2% in Bitcoin. Bitcoin's weight therefore rose 10.1 percentage points by Aug. 5, while Ether's fell nine points. Meanwhile, Grayscale Investments announced a major rebalance on August 3 that reshaped its Smart Contract Fund, with BNB (BNB) now holding the top position at 30.6%, pushing Ethereum (ETH) to 29.47% and Solana (SOL) to 29.15%. The change made BNB the fund's largest holding immediately after its addition, though the rebalance followed the CoinDesk Smart Contract Platform Select Capped Index methodology rather than a discretionary forecast.
Despite Bitcoin receiving the smallest weight, it remained the strongest of the three assets in 2026. As reported by GSR, Bitcoin had lost 24.82% year to date, while Ether was down 35.49% and Solana recorded the deepest decline at 40.21%. Over one year, Bitcoin fell 47.08%, compared with losses of 44.73% for Ether and 54.89% for Solana. Ether still delivered the strongest return over the most recent 30 days, gaining 5.16%, while Bitcoin rose 1.26% and Solana lost 9.64%. The performance data comes as Grayscale implemented its Q2 rebalance, with the firm noting that BNB entered at 30.6%, edging ETH to 29.47% and SOL to 29.15%. The Smart Contract Fund's previous quarterly basket held Ether at 30.14% and Solana at 29.69%, with Cardano at 17.96% before BNB's addition.
According to GSR, market conditions remained subdued during the latest week with modest price changes, while trading activity and volatility declined. The firm interpreted those conditions as a quieter market without a strong directional trend. Solana's measured volatility also eased sharply, with its 30-day volatility at 37.39%, below Ether's 41.69%, although still above Bitcoin's 29.89%. Solana's 60-day reading remained higher at 54.92%, showing that its calmer recent trading followed a more unstable period. Grayscale executed its rebalance by selling existing Fund Components in proportion to their respective weightings and using the cash proceeds to purchase BNB. The remaining allocations after the rebalance included Cardano at 4.88%, Hedera at 2.08%, Avalanche at 1.92% and Sui at 1.9%.
The Core3 portfolio lost 37.86% year to date and 57.78% over one year, trailing an alternative portfolio allocating equal amounts to Bitcoin, Ether and Solana which declined 33.99% and 49.84% over the same periods. As reported by GSR, Core3 therefore trailed the equally weighted basket by 3.87 percentage points in 2026 and 7.94 points over one year. The result shows the difference between a changing allocation model and a passive basket, with the model attempting to adjust exposure based on GSR's signals. Grayscale's Smart Contract Fund also underwent significant changes, with Cardano (ADA) absorbing the sharpest cut, falling from 17.96% in May to 4.88% in August, while the firm also slashed Hedera (HBAR), Avalanche (AVAX), and Sui (SUI). The fund's DeFi Fund saw Uniswap (UNI) retain the top position at 34.16%, followed by Ondo (ONDO) climbing from 19.83% to 25.44%, while the Decentralized AI Fund led by Near Protocol (NEAR) at 31.35%.
According to GSR, the model's next weekly allocation will show whether the shift continues toward Bitcoin or reverses. The model's 30-day volatility stood at 38%, compared with 35.87% for the equally weighted basket. Investors should distinguish the model results from returns available through a live investment strategy, as GSR noted its figures are hypothetical, exclude transaction and management fees and do not include staking rewards. The firm emphasized that the portfolio's allocations reflect a proprietary framework whose positions may not translate into future performance. Grayscale's quarterly update spanned three funds rather than two, with the firm noting that the Decentralized AI Fund is now led by Near Protocol (NEAR) at 31.35%, while the DeFi Fund saw Ondo (ONDO) climb from 19.83% to 25.44%. The Smart Contract Fund allocation and proposed BNB ETF are separate products, with the fund rebalance not amounting to SEC approval for the separate GBNB registration.
