Grayscale Investments Introduces Decentralized AI Fund
About the Fund
Grayscale Investments has launched its latest offering, the Decentralized AI Fund, targeting artificial intelligence protocols within the cryptocurrency space. According to a July 17 press release, the new fund aims to provide accredited investors with exposure to the growing intersection of AI and blockchain technology.
The announcement describes the investment product as follows:
The Fund seeks to provide investors with exposure to protocols in the burgeoning artificial intelligence sector within the crypto ecosystem.
Investment Strategy
The Decentralized AI Fund will concentrate on a select group of protocols, including Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR). With quarterly rebalancing, the fund seeks to capitalize on the decentralized, accessible, and transparent nature of blockchain technology in the AI sector.
Investment Categories
The fund targets three primary categories:
- Protocols developing decentralized AI services
- Solutions addressing AI-related challenges
- Essential AI infrastructure
These areas encompass a range of applications from chatbots and image generation to authenticity verification against bots and deepfakes, as well as decentralized platforms for data storage, GPU computation, and 3D rendering.
Assets Allocation
As of July 16, 2024, the fund’s asset allocation stood with:
- Near (NEAR) at 32.99%
- Filecoin (FIL) at 30.59%
- Render (RNDR) at 24.86%
- Livepeer (LPT) at 8.64%
- Bittensor (TAO) at 2.92%
Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research said:
The rise of disruptive technologies has created compelling opportunities for Grayscale’s investors since our 2013 inception, and we believe the launch of the Grayscale Decentralized AI Fund provides an opportunity to invest in Decentralized AI at its earliest phase. […] The blockchain-based AI protocols embody the principles of decentralization, accessibility, and transparency, and the Grayscale team feels strongly that these protocols can help mitigate the fundamental risks emerging alongside the proliferation of AI technology.
Related Launch
This launch follows Grayscale’s introduction of the Dynamic Income Fund (GDIF) in May. GDIF caters to high-net-worth investors, focusing on proof-of-stake tokens and aiming to optimize returns through dynamic strategies and staking rewards.
Conclusion
Grayscale Investments has successfully launched its latest offering, the Decentralized AI Fund, targeting artificial intelligence protocols within the cryptocurrency space. With its investment strategy focused on a select group of protocols and quarterly rebalancing, the fund seeks to capitalize on the decentralized, accessible, and transparent nature of blockchain technology in the AI sector.
FAQs
What is the Grayscale Decentralized AI Fund?
The Grayscale Decentralized AI Fund is an investment product that targets artificial intelligence protocols within the cryptocurrency space.
What are the investment categories for the fund?
The fund targets three primary categories: protocols developing decentralized AI services, solutions addressing AI-related challenges, and essential AI infrastructure.
Which protocols are included in the fund?
The fund includes a select group of protocols, including Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR).
How is the fund allocated?
As of July 16, 2024, the fund’s asset allocation stood with Near (NEAR) at 32.99%, Filecoin (FIL) at 30.59%, Render (RNDR) at 24.86%, Livepeer (LPT) at 8.64%, and Bittensor (TAO) at 2.92%.
What is the launch date for the fund?
The launch date for the Grayscale Decentralized AI Fund is July 17, 2024.
