Yuma, a decentralized AI investment firm backed by Digital Currency Group, has launched a new fund that gives institutional investors a direct route into Bittensor – the open-source protocol powering a decentralized network of machine-learning models. The vehicle arrives as traditional asset managers increasingly roll out products tied to Bittensor’s native token, TAO, and as the broader push for decentralized AI accelerates on the back of recent regulatory curbs on Anthropic’s proprietary models.
The fund marks one of the first institutional-grade vehicles focused exclusively on Bittensor, a network that rewards participants for training and hosting AI models in a permissionless framework. By packaging TAO exposure into a structured product, Yuma aims to attract pension funds, endowments, and family offices that have so far remained on the sidelines of the tokenized AI space.
“We’re seeing a clear pivot toward decentralized AI infrastructure,” a Yuma spokesperson said. “Institutions want exposure without the operational burden of directly managing tokens or staking. This fund bridges that gap.”
Yuma’s move mirrors a broader trend: several asset managers have recently filed for or launched TAO-linked trusts and exchange-traded products. The timing is no coincidence. In late May, U.S. regulators imposed new restrictions on Anthropic’s large language models, citing safety and alignment concerns. That decision pushed some institutional capital toward open-source and decentralized alternatives, where no single entity controls the underlying model.
Bittensor’s market structure remains volatile. TAO has roughly a $3 billion fully diluted valuation and trades on a handful of centralized exchanges, but liquidity is thin compared to top-tier tokens. That means even modest institutional inflows could swing the price. Yuma’s fund is structured to minimize slippage, according to the firm, though it did not disclose the fund’s total size or fee structure.
The launch also indications DCG’s deepening bet on decentralized AI. The conglomerate, which already holds stakes in Grayscale, CoinDesk, and several layer-1 protocols, has been quietly building out its exposure to machine-learning blockchains. Yuma was spun out of DCG last year to focus specifically on this sector.
For now, institutional investors looking at TAO must weigh the technology’s promise against its track record. Bittensor’s network has faced periodic outages and governance disputes, and the token’s price has been highly correlated with broader crypto sentiment. Still, the combination of regulatory pressure on centralized AI and a growing product pipeline suggests more capital could flow into the ecosystem.
The next catalyst to watch is the launch of any spot TAO ETF in the U.S. Several issuers have indicates interest but have not yet filed. If one lands, Yuma’s fund could become a feeder vehicle – or face competition from a more liquid public product. For now, the Yuma fund is the most direct institutional on-ramp to Bittensor outside of direct token purchases.
Yuma launches fund for Bittensor AI token, easing access for big investors
Yuma, backed by Digital Currency Group, created a fund to let large investors buy Bittensor’s AI token TAO without managing it themselves. This matters because it opens decentralized AI investing to pension funds and similar groups amid rising regulation of proprietary AI models.