Photo credit: Grayscale/X

Grayscale launched a new crypto fund that offers accredited investors exposure to blockchain-based protocols developing and utilizing artificial intelligence (AI) technologies, the asset manager announced on July 17.

The Grayscale Decentralized AI Fund, which will rebalance quarterly, currently includes a basket of five decentralized AI crypto protocols, namely Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR), the company said in a press release.

The fund’s investments target three key areas. First, it focuses on protocols developing decentralized AI services, particularly those centered on technologies like chatbots and image generation. Second, it invests in protocols that aim to solve problems arising from centralized AI systems. This includes combating deepfakes and misinformation, as well as providing authenticity checks against bots.

The third area of focus is infrastructure and resources crucial for AI development. This encompasses decentralized marketplaces for data storage, GPU computation, 3D rendering, and streaming services.

As of July 16, the Grayscale Decentralized AI Fund’s portfolio consisted primarily of FIL at 30.59%, followed by NEAR (32.99%) and RNDR (24.86%). The fund also held smaller positions in TAO at 2.92% and LPT (8.64%).

Those AI tokens rose slightly by 1-3% on the back of the announcement, per CoinGecko data, but those gains have since moderated at the time of writing.

The launch of the fund comes amid growing interest in the potential of AI, as well as concerns about the centralization of AI development and the potential risks associated with it. This interest is evident in recent market activity, such as the merging of several AI-focused crypto tokens into Fetch.ai’s FET token as part of a broader initiative to create a decentralized AI ecosystem.

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