Grayscale Increases Cardano Exposure as ADA Strategy Grows

TL;DR

• Grayscale increased ADA allocation to 20.07% in Smart Contract Fund.

• Zach Humphries links move to Cardano’s Bitcoin DeFi strategy.

• Coinbase now allows ADA as loan collateral up to $100K.

• Arizona SB1649 proposes digital asset reserve including ADA.

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Grayscale Investments has increased Cardano’s allocation in its Smart Contract Fund as the network advances its Bitcoin DeFi strategy. The asset manager raised ADA’s weighting from 19.50% to 20.07%, according to recent portfolio data. The adjustment comes as Cardano continues to position itself as a smart contract layer for Bitcoin-based decentralized finance.

Grayscale Increases ADA Allocation in Smart Contract Fund

Grayscale’s Smart Contract Fund maintains diversified exposure to major blockchain networks. The latest portfolio data shows Solana at 28.58% and Ethereum at 28.41%. Cardano now accounts for 20.07% of the fund.

The increase, though modest, reflects continued institutional allocation toward ADA. Crypto analyst Zach Humphries commented on the development, noting that the allocation change aligns with broader ecosystem progress. He stated that many investors may overlook ADA during periods of volatility, yet institutional positioning appears steady.

ADA has traded near $0.28 after recent resistance tests. Over the past week, the token remains up around 4% as it attempts to stabilize.

Cardano Expands Into Bitcoin-Based DeFi

Cardano’s development arm, Input Output Global, previously demonstrated a live Bitcoin DeFi transaction at the Bitcoin 2025 Conference in Las Vegas. Developers executed an on-chain swap of Bitcoin for Cardano-based tokens.

The network later introduced Cardinal, described as Cardano’s first Bitcoin DeFi protocol. The system enables users to bridge and stake BTC using Cardano’s extended UTXO model. This structure allows Bitcoin holders to access DeFi services without relinquishing custody of their assets.

Humphries stated that Bitcoin-driven liquidity could differentiate Cardano in a market often dominated by Ethereum and Solana. He suggested that even limited adoption may channel measurable liquidity into the ecosystem.

Coinbase Adds ADA Loan Support

Coinbase has expanded its on-chain lending product through the Morpho protocol. The update allows ADA as collateral for loans up to $100,000 in USDC for eligible U.S. customers, excluding New York residents.

The lending product previously supported Bitcoin and Ether, recording over $1.9 billion in loan originations since launch. By including ADA, Coinbase enables holders to access liquidity without selling their assets.

This development adds another layer of utility to Cardano’s ecosystem. Institutional and retail participants now have additional avenues for capital access while maintaining exposure to ADA.

Policy Developments Add Broader Context

In Arizona, Senate Bill 1649 continues to move through legislative review. The proposal seeks to establish a Digital Assets Strategic Reserve Fund that could include Bitcoin, XRP, and other digital assets.

The bill passed the Senate Finance Committee by a 4-2 vote and now advances to the Senate Rules Committee. While ADA is not specifically named, the broader policy environment reflects growing state-level engagement with digital assets.

Grayscale’s allocation increase, Cardano’s Bitcoin DeFi rollout, and expanded lending integrations collectively frame the latest developments surrounding ADA.

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