Key facts: Artificial intelligence (AI) is one of the trending niches in the cryptocurrency industry. There are “attractive opportunities for investors,” says Grayscale. Grayscale, a cryptocurrency investment vehicle management company, has announced the launch of a new fund focused on decentralized artificial intelligence (AI). The product, called Grayscale Decentralized AI Fund, seeks to provide investors with exposure to protocols in the artificial intelligence sector within the cryptoasset ecosystem. The company, which owns the second-largest bitcoin (BTC) exchange-traded fund (ETF), sees AI in an early phase of development. That is why they considered it appropriate to launch an instrument with exposure to this sector. “The rise of disruptive technologies has created attractive opportunities for investors,” he said. For Grayscale, AI protocols based on cryptocurrency networks embody the principles of decentralization, accessibility and transparency. It argues that these can help mitigate the fundamental risks that arise along with the proliferation of technology. The company's new fund is made up of crypto assets from three categories of AI: service creation protocols such as chat bots; solutions to centralized problems such as authenticity checks; and, finally, infrastructure and resources for development such as markets for data storage. Crypto asset allocations will be rebalanced quarterly according to those they consider to have the most potential. Currently, includes exposure to near (NEAR), filecoin (FIL), render (RNDR), livepeer (LPT) and bittensor (TAO).
AI sector crypto assets react upwards
While Grayscale's fund is available only to accredited investors, Their arrival represents the possibility of more capital entering the sector.. As a result, any inflows they experience can push crypto assets higher. Prices of crypto assets exposed in the fund, along with others in the AI market, have seen a rally following the announcement, showing that The market has received it positively. With the exception of NEAR, they are up between 4% and 7% over the past 24 hours. NEAR, which is the token with the largest market cap in the AI sector, undid the rise it experienced after the news. However, it remains the best performer in seven days of the group, with an increase of 33%, so its decline seems part of a normal correction in the face of the rise.
AI-related cryptoassets with the highest market capitalization. Source: CoinMarketCap. As the image shows, the one that shows the best reaction at the time of this writing is TAO, which may be a product of its low market capitalization. This makes it more susceptible to high price volatility with lower trading volumes than others. As BitcoinDynamic reported, This scenario occurs in the midst of bitcoin's recovery this week to USD 66,000, which expanded the overall demand for the cryptocurrency market.