Grayscale Launches Pioneering Fund for Decentralized AI in Crypto Space

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Hours after former President Donald Trump named JD Vance as his 2024 running mate, a new Ethereum-based token, JDV, saw its value surge over 400%. The JDV/WETH pair on Uniswap V2 reached $0.0001869, up from $0.0000366.

Grayscale, a prominent crypto asset manager, has unveiled its latest investment vehicle: the Grayscale Decentralized AI Fund LLC. This innovative fund aims to capitalize on the burgeoning intersection of artificial intelligence and blockchain technology, offering investors exposure to a carefully curated portfolio of decentralized AI projects.

We’re pleased to announce the launch of our newest private placement investment product, Grayscale Decentralized AI Fund. Available to eligible accredited investors.$NEAR $RNDR $FIL $LPT $TAO

See important disclosures or speak directly to a team member: https://t.co/gYetdms280 pic.twitter.com/OvNhec95io

— Grayscale (@Grayscale) July 17, 2024

The fund, which will undergo quarterly rebalancing, launches with a diverse basket of assets including Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR). Among these, Near, Filecoin, and Render currently hold the top-weighted positions in the fund’s portfolio.

Grayscale’s new offering targets three key areas within the decentralized AI landscape. First, it focuses on projects developing AI-driven applications such as chatbots and generative image tools. Second, the fund aims to support initiatives addressing challenges associated with centralized AI, including deep fakes, misinformation, and bot authentication. Lastly, it seeks to bolster AI-related infrastructure, encompassing GPU computation, data storage, decentralized marketplaces, and other essential services.

Rayhaneh Sharif-Askary, Grayscale’s head of product and research, emphasized the fund’s strategic importance: “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.”

Sharif-Askary further highlighted the potential of blockchain-based AI protocols to mitigate risks associated with the rapid proliferation of AI technology, citing their adherence to principles of decentralization, accessibility, and transparency.

This latest fund launch follows Grayscale’s introduction of a NEAR-focused trust in May, demonstrating the company’s commitment to diversifying crypto investment opportunities. As of July 17, NEAR was trading at $6.13, showing a slight 0.42% increase over the past 24 hours.

Grayscale continues to maintain a strong presence in the crypto investment space, with its Grayscale Bitcoin Trust (GBTC) ranking as the second-largest spot bitcoin ETF, behind only BlackRock’s IBIT. As of July 16, GBTC boasted $17.68 billion in assets under management, underscoring Grayscale’s significant role in the evolving cryptocurrency investment landscape.