Grayscale launches new fund for decentralized artificial intelligence
Quick Take
- The Grayscale Decentralized AI Fund LLC aims to bolster investment endeavors regarding AI in the cryptocurrency industry.
- The fund will finance three key areas: AI services, addressing problems related to centralized AI use, and developing AI-related infrastructure.
The crypto asset manager is launching a new fund focusing on decentralized artificial intelligence.
The Grayscale Decentralized AI Fund LLC, which will rebalance quarterly, aims to bolster investment endeavors regarding AI in the cryptocurrency industry, according to a release shared with The Block. Decentralized AI projects already included in the fund's basket as of today's launch are Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR). Near, Filecoin and Render are, respectively, the top-weighted assets in the fund.
The release continues that the fund will focus on financing projects in three areas: chatbots, generative images and other decentralized AI uses; addressing centralized AI problems like deep fakes, misinformation and authenticating bots; and AI-related infrastructure like GPU computation, data storage, decentralized marketplaces and other services.
“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," said Rayhaneh Sharif-Askary, Grayscale’s head of product and research, in a statement. "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.”
Grayscale launched a trust focusing on NEAR in May of this year to give investors diversified crypto exposure. NEAR traded at $6.13, experiencing a 0.42% increase in the past 24 hours, as of 9:13 a.m. ET (13:13 UTC) as of July 17.
The crypto asset manager's spot bitcoin exchange-traded fund, the Grayscale Bitcoin Trust, is the second largest spot bitcoin ETF behind BlackRock's IBIT, The Block's Data Dashboard shows. GBTC held $17.68 billion in assets under management as of July 16.
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