AI tokens rally following Grayscale's Decentralized AI Fund launch
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- Grayscale has launched a decentralized AI fund to grant investors exposure to the prices of AI tokens.
- The fund will provide price exposure to TAO, RNDR, NEAR, LPT, and FIL.
- The Artificial Intelligence coins market cap rose nearly 4% after the announcement.
Grayscale launched its Decentralized AI Fund on Wednesday, allowing investors to gain exposure to the price of AI-focused cryptocurrencies. Following the announcement, the general market cap of AI tokens rose by nearly 4%.
Grayscale unveils latest crypto fund focused on AI tokens
Crypto asset manager Grayscale launched its latest digital asset fund today, which focuses on AI-based tokens. According to its official press release, the Grayscale Decentralized AI Fund LLC will grant traditional investors exposure to AI-focused crypto tokens while supporting AI-related investment initiatives in the crypto market.
"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 Grayscale's Head of Product & Research, Rayhaneh Sharif-Askary.
The fund now includes tokens of various decentralized AI crypto protocols, which will rebalance every three months. These include Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR) with weightings of 2.92%, 30.59%, 8.64%, 32.99% and 24.86%, respectively.
Notably, AI tokens were among the best-performing cryptocurrencies in H1 2024, maintaining similar price growth patterns to Nvidia (NVDA). Their rapid rise may have attracted increased investors' attention, leading to the eventual launch of Grayscale's Decentralized AI Fund.
"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," said Rayhaneh.
Meanwhile, several AI tokens began rallying today following the announcement of the latest Grayscale fund. Some of the most notable tokens that surged in this category include Internet Computer (ICP), RNDR, TAO and Arkham (ARKM), all rising nearly 7% in the past 24 hours, according to data from Coingecko.
The rise across these tokens has pushed up the market capitalization of AI tokens by nearly 4%.
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