Grayscale Introduces Fund Based on AI Tokens

Investment firm Grayscale has launched a new cryptocurrency fund focused on tokens from decentralized AI protocols.

We’re pleased to announce the launch of our newest private placement investment product, Grayscale Decentralized AI Fund. Available to eligible accredited investors.$NEAR $RNDR $FIL $LPT $TAO

See important disclosures or speak directly to a team member: https://t.co/gYetdms280 pic.twitter.com/OvNhec95io

— Grayscale (@Grayscale) July 17, 2024

At launch, the Grayscale Decentralized AI Fund’s asset basket includes Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR). The fund is targeted at accredited investors and is not available to the general public.

A press release states that the new instrument focuses on three categories of decentralized AI assets:

• protocols creating decentralized services such as chatbots and image generation platforms;
• solutions addressing centralized issues using neural networks, including combating misinformation and authentication to counter bots;
• infrastructure projects focused on data storage, GPU computing, 3D rendering, and streaming services.

“[…] We believe the launch of the Grayscale Decentralized AI Fund offers an opportunity to invest in decentralized AI at its early stage. AI-related blockchain protocols embody the principles of decentralization, accessibility, and transparency. The Grayscale team firmly believes these projects can help mitigate fundamental risks arising alongside the proliferation of AI technologies,” commented Grayscale’s Head of Product and Research, Rayhaneh Sharif-Askari.

The fund will rebalance its assets quarterly. As of July 17, the token allocation in the Grayscale Decentralized AI Fund is as follows:

In May, the SEC approved the launch of an Ethereum ETF for Grayscale and other companies. 

That same month, BlackRock’s Bitcoin-based fund surpassed Grayscale’s similar financial instrument in AUM.