Once restricted to private placements, Grayscale’s decentralized AI fund, which includes leading altcoins such as Near Protocol (NEAR), Bittensor (TAO), Render (RNDR), and Filecoin (FIL), now provides investors with focused access to premier AI-driven blockchain initiatives.
This transition creates opportunities for a wider array of investors to engage in the burgeoning nexus of artificial intelligence and blockchain technology.
Grayscale Opens Decentralized AI Fund to Accredited Investors
Previously only accessible through private placements, Grayscale Decentralized AI Fund LLC now grants accredited investors the chance to invest in a diversified collection of tokens from prominent decentralized AI and blockchain enterprises. Qualified investors can achieve exposure to key AI-powered protocols via securities, sidestepping the challenges associated with directly acquiring, storing, and safeguarding digital currencies. Rather, they possess shares that reflect the worth of the fund’s underlying assets.
“Shares are designed to mirror the values of the Fund Components based on their corresponding Digital Asset reference Rates and Weightings, minus fees and expenses. The Fund Components include the digital assets chosen following the Fund Methodology, as enacted by the manager, and the Fund undergoes rebalancing periodically,” as stated on the fund’s website reads.
Read more: How To Invest in Artificial Intelligence (AI) Cryptocurrencies?
The fund manager conducts rebalancing quarterly, concentrating on three primary sectors: decentralized AI services, solutions to challenges posed by AI, and AI infrastructure. These areas align with investment goals, and holdings are spread across five distinct assets.
The choice of these five tokens is based on their overall functions and roles in the advancement and application of AI technologies.
- Bittensor (TAO) — 5.4%. Protocols that develop Decentralized AI services, such as chatbot functionalities and image generation tools.
- Filecoin (FIL) and Livepeer (LPT) — 29.3% and 8.7%, respectively. Protocols creating solutions to tackle centralized AI-related challenges, including authenticity verification against bots, deep fakes, and misinformation.
- Near Protocol (NEAR) and Render (RNDR) — 29.7% and 26.7%, respectively. Infrastructure and resources vital for the development of AI technology, encompassing decentralized marketplaces for data storage, GPU computation, 3D rendering, and streaming services.
Grayscale Decentralized AI Fund Performance
As of September 27, the net asset value (NAV) per share for the Grayscale Decentralized AI Fund LLC was $9.50, reflecting a 1.5% increase within a single day. The fund manages $1,462,249 in assets (AUM) with 153,900 shares outstanding.
BeInCrypto reported on the fund’s inception in mid-July, noting fluctuations in performance since then. Over the previous month, the NAV experienced a decline of 15.6%, and since its launch on July 2, 2024, it has decreased by 26.8%, mirroring the overall market volatility.
The investment manager has a keen interest in this domain. In a recent research insight, it recognized AI crypto coins as promising tokens for 2024, notable mentions being NEAR, RNDR, and Akash, emphasizing their potential across various sectors of digital assets.
“Blockchain technology can enhance developer access to AI, lowering the barriers for independent developers to create and monetize their innovations. We believe this can help foster overall AI innovation and competition while providing balance against the models operated by tech giants. Decentralized AI crypto assets are accessible to everyone, enabling all to participate in an AI-driven future,” stated Grayscale’s Research Associate Will Ogden Moore.
Read more: How Will Artificial Intelligence (AI) Transform Crypto?
Prior to launching the AI fund, the asset manager introduced NEAR and Stacks (STX) focused trusts, offering investors diversified exposure to these particular cryptocurrencies.
Disclaimer
In accordance with the Trust Project guidelines, BeInCrypto is dedicated to providing unbiased and transparent reporting. This news article aims to relay accurate and timely information. However, readers are encouraged to independently verify facts and consult with professionals prior to making any decisions based on this content. Please be aware that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
