Grayscale Launches a Decentralized AI Fund to Track Projects Like Filecoin, Bittensor

Grayscale’s just announced its latest product, launching its Decentralized AI Fund. This new offering is aiming to ride the wave of AI hype while keeping one foot firmly planted in the crypto space. Let’s break it down.

Here’s the lowdown on Grayscale’s latest creation:

  • The fund tracks five tokens: Near (NEAR), Filecoin (FIL), Render (RNDR), Livepeer (LPT), and Bittensor (TAO)
  • NEAR leads the pack at 32.99%, followed by FIL at 30.59%
  • The fund is only available to accredited investors (sorry, retail folks)
  • It’s designed to capture the intersection of blockchain and AI
  • The fund will rebalance quarterly to stay on top of market trends

Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary, explained the fund’s focus. It targets three main categories of Decentralized AI assets: protocols building decentralized AI services, those addressing centralized AI-related problems, and infrastructure critical to AI technology development.

This fund could be seen as a smart play by Grayscale, says Tobi Opeyemi Amure, an analyst at Trading.Biz . “AI is the hottest trend in tech right now, with Nvidia’s stock price shooting to the moon and AI startups raking in a record $33 billion in the first half of 2024. Grayscale is positioning itself right at the center of where the money is in this cycle: AI and crypto.”

Moreover, the AI token market has been on fire lately. According to DefiLlama, AI-related tokens have surged 24.2% in the past week, outperforming Bitcoin, Ethereum, and even the high-flying Solana.

But let’s not get carried away with the AI hype. The fund’s composition raises some eyebrows. NEAR and FIL make up over 60% of the fund, but their connection to AI is somewhat tangential. They’re more general-purpose blockchain platforms that could be used for AI applications rather than dedicated AI protocols.

Still, for accredited investors with a high risk tolerance and a belief in the long-term potential of decentralized AI, this fund could be an interesting play. But it’s certainly not for the faint of heart.

Naaim Sajjad - CAMS

AML | Compliance | Crypto | Fraud | Memes

4 个月

Excellent write up.... This is great news for Near,fill and Rndr. Price usually make positive impact to such news as it depicts strong confidence of investors. -It has been expanding its crypto-focused offerings, including the Grayscale Dynamic Income Fund (GDIF) launched earlier this year. -GDIF focuses on crypto staking and includes tokens like APT, TIA, and ATOM. -These moves underscore Grayscale’s commitment to leveraging the synergies between AI and blockchain. -Blockchain can democratize access to AI, lowering barriers for developers to build and monetize their work, it will enhance AI innovation and competition.

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