Gray increased its holdings of BNB as the largest smart contract fund position

Gray Smart Contract Funds completed their second quarter rebalancing on August 5, with BNB ranking first with a weight of 30.6%, ahead of Ethereum (29.47%) and Solana (29.15%). The market value of Ethereum is in the range of US$224 billion to US$232 billion, and the market value of BNB is in the range of US$76 billion to US$79 billion.

Taking the data at the beginning of August 2026 as an example, BNB accounted for 30.6%, corresponding to a market value of approximately US$76 billion to US$79 billion; Ethereum accounted for 29.47%, corresponding to a market value of approximately US$224 billion to US$232 billion.

$BNB now accounts for the largest share of grayscale smart contract funds (approximately 31%),@grayscale - BNB Chain (@BNBCHAIN) August 6, 2026.

Any component stock that reaches this limit will retain that weight even if its actual market value far exceeds the threshold, and the excess will be reallocated to other assets in the basket.

In May 2026, Gray submitted its first U.S. spot ETF application linked to the privacy cryptocurrency Zcash (ZEC), expanding the scope of its crypto investment products beyond Bitcoin and Ethereum.

Changes since the first quarter

In comparison, the quarterly changes are smaller for two of the top three than the title suggests, and much larger for the fourth. At the close of the first quarter of 2026 (as of May 1), the fund held 30.14% of Ethereum, and Solana accounted for 29.69%.

The new assets reduced the allocation ratio of Ethereum and Solana by less than one percentage point. Cardano was an exception: its weight dropped from 17.96% to 4.88%, a decline that was far from being explained by simple dilution. This decline reflects the impact of more than just the addition of BNB.

Comparison between the first quarter and the second quarter of 2026: BNB increased from zero to 30.6%; Ether dropped from 30.14% to 29.47%; Solana dropped from 29.69% to 29.15%; Cardano dropped sharply from 17.96% to 4.88%.

Why the SEC withdrawal is more important than Zhao Changpeng's pardon

The compliance issue behind the August 5 adjustment is why a trusteeship reviewed benchmark index would allow BNB to enter regulated packaged products. Gray's explanation is that fund components must meet specific trading and liquidity requirements, and BNB has failed to pass such screening for years, for reasons far beyond the Binance settlement mentioned in most reports.

The US$4.3 billion Justice Department agreement under which Zhao Changpeng pleaded guilty to one anti-money laundering charge and served four months in prison was a criminal settlement for Binance's own actions.

The issue arose in a parallel SEC civil lawsuit filed in the same month, and a 2024 order by Judge Amy Berman Jackson allowed the lawsuit to proceed against Binance's own BNB sales: the court found that the SEC reasonably alleged that the sales were unregistered investment contracts, while rejecting a narrower claim to cover secondary market BNB transactions. This would have given the Compliance Committee a clear reason to exclude BNB from the index.

On May 29, 2025, the SEC and Binance jointly withdrew the lawsuit in a non-reactionable manner.

This distinction is important for the order: the SEC's withdrawal cleared the regulatory path for holding BNB's products; the pardon followed it.

In the application documents of the Gray BNB ETF, the determination of "whether BNB belongs to or involves securities trading" is still listed as an unresolved risk factor until its most recent revision.

Seven-month construction process: S-1, GDLC and August 5

On January 8, 2026, Gray established a trust in Delaware for its independent BNB ETF and filed Form S-1 on January 23, about three months before the pardon and about eight months before the SEC withdrew its appeal.

Eleven days later, on February 3, Gray replaced Cardano with BNB in its flagship multi-asset ETF (GDLC) for the same reasons as all its products: market value, liquidity and standard statements.

June 5, 2023: The SEC sued Binance, BAM Trading and Zhao Changpeng, accusing BNB itself of selling as unregistered securities, for a total of 13 charges.

November 2023: Binance and Zhao Changpeng reached a US$4.3 billion settlement with the Ministry of Justice; Zhao Changpeng pleaded guilty to one count of anti-money laundering.

June 28, 2024: Judge Amy Berman Jackson allowed the SEC to continue hearing allegations against Binance's own BNB sales, while rejecting claims to cover secondary market BNB transactions.

February 2025: The SEC and Binance jointly filed a 60-day suspension of the case.

May 29, 2025: The SEC and Binance jointly dropped the case in a non-reactionable manner.

October 23, 2025: President Trump pardons Zhao Changpeng.

January 8, 2026: Gray establishes a trust in Delaware for an independent BNB ETF.

January 23, 2026: Gray submitted Form S-1 for Gray BNB ETF (GBNB).

February 3, 2026: Gray replaces Cardano with BNB in its multi-asset ETF (GDLC).

June 3, 2026: Gray submitted the third amendment to GBNB S-1, which is still pending approval.

August 5, 2026: BNB entered the grayscale smart contract fund with a weight of 30.6%, becoming its largest position.