Grayscale launches a crypto AI fund with 5 tokens.

While everyone eagerly awaits the Ethereum ETF, Grayscale has made a significant move into the decentralized AI sector. The group, renowned for its crypto fund management, announced the launch of Grayscale Decentralized AI Fund LLC, which will invest in top AI crypto tokens, as selected by Grayscale.

The initial selection of tokens in the fund is sure to generate buzz. The fund will include $TAO from Bittensor, $FIL from Filecoin, $LPT from Livepeer, $RNDR from Render, and $NEAR from Near Protocol. Although some notable cryptos are excluded, this carefully curated selection highlights the potential of these projects.

The crypto AI sector has been among the best performers of 2023 and 2024, and Grayscale aims to bring the top tokens to a broader audience. This is not an ETF, but a fund traded outside traditional exchanges, following Grayscale’s typical approach.

The chosen tokens are selected based on various factors: protocols developing decentralized AI services, solutions addressing AI-related challenges, and critical infrastructure protocols for AI technology like data and storage sharing, GPU sharing, computation, rendering, and streaming services.

Currently, the fund includes $TAO at 2.92%, $FIL at 30.59%, $LPT at 8.64%, $NEAR at 32.99%, and $RNDR at 24.86%. Holdings will be rebalanced quarterly.

This selection, while sparking discussions, underscores the forward-thinking strategy of Grayscale, though it excludes projects like $ASI, which includes $AGIX, $OCEAN, and $FET, and the efforts of ICP in the AI sector. Future expansions could potentially incorporate these assets.

The fund will initially be available only to accredited investors chosen by Grayscale, and, for now, it won't be accessible to the general public. This innovative move by Grayscale showcases their commitment to leading in the evolving crypto and AI landscape.