Grayscale Opens Its Decentralized AI Fund to Selected Investors
Previously available only through private placement, Grayscale’s decentralized AI fund, which features top altcoins like Near Protocol (NEAR), Bittensor (TAO), Render (RNDR), and Filecoin (FIL), now offers investors targeted exposure to top AI-powered blockchain projects.
This shift opens up opportunities for a broader range of investors to participate in the growing intersection of artificial intelligence and blockchain technology.
Grayscale Opens Decentralized AI Fund to Accredited InvestorsPreviously available only through private placement, Grayscale Decentralized AI Fund LLC now offers accredited investors access to a diversified basket of tokens from leading decentralized AI and blockchain projects. Eligible investors can gain exposure to top AI-powered protocols in the form of securities, avoiding the complexities of directly purchasing, storing, and securing digital currencies. Instead, they hold shares that represent the value of the fund’s underlying assets.
“Shares are intended to reflect the values of the Fund Components as determined by reference to their respective Digital Asset reference Rates and Weightings, less fees and expenses. The Fund Components consist of the digital assets selected using the Fund Methodology as implemented by the manager and the Fund is rebalanced from time to time,” the fund’s website reads.
Read more: How To Invest in Artificial Intelligence (AI) Cryptocurrencies?
The manager rebalances the fund quarterly, focusing on three key areas: decentralized AI services, solutions to AI-related challenges, and AI infrastructure. These are in alignment with investment objectives, and holdings are distributed across five assets.
The selection of these five tokens is based on their general functions and purposes within AI technology development and deployment.
- Bittensor (TAO) — 5.4%. Protocols building Decentralized AI services, such as chatbots and image generation services.
- Filecoin (FIL) and Livepeer (LPT) — 29.3% and 8.7%, respectively. Protocols are building solutions to centralized AI-related problems. This includes authenticity checks against bots, deep fakes, and misinformation.
- Near Protocol (NEAR) and Render (RNDR) — 29.7% and 26.7%, respectively. Infrastructure and resources critical to AI technology development. This includes decentralized marketplaces for data storage, GPU computation, 3D rendering, and streaming services.
As of September 27, the Grayscale Decentralized AI Fund LLC’s net asset value (NAV) per share was $9.50, reflecting a 1.5% increase in one day. The fund manages $1,462,249 in assets (AUM) with 153,900 shares outstanding.
BeInCrypto reported the fund’s launch in mid-July, and its performance has fluctuated since then. Over the last month, the NAV has dropped by 15.6%, and since its July 2, 2024 debut, it has fallen by 26.8%, reflecting the broader market volatility.
Grayscale Decentralized AI Fund Performance. Source: Grayscale
The investment manager has vested interest in this space. In its recent research insight, it identified AI crypto coins as high-potential tokens for 2024. Notable mentions include NEAR, RNDR, and Akash, highlighting their potential across various digital asset sectors.
“Blockchain technology can help increase developer access to AI, lowering the barrier for independent developers to build and monetize their work. We believe this could help improve overall AI innovation and competition as well as provide balance with the models developed by tech giants. Decentralized AI crypto assets are available to everyone, allowing all to own a part of an AI future,” said Grayscale’s Research Associate Will Ogden Moore.
Read more: How Will Artificial Intelligence (AI) Transform Crypto?
Prior to the AI fund, the asset manager launched NEAR and Stacks (STX) focused trusts, providing investors with diversified exposure to these specific cryptocurrencies.
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