Yuma, an investment firm backed by Digital Currency Group, has launched a new fund designed to provide institutional investors with streamlined exposure to the Bittensor ecosystem. The Yuma Total Market Fund pools assets into Bittensor’s native TAO token along with a selection of AI-focused subnets, enabling investors to engage with the growing decentralized AI network through a single investment vehicle.
The fund was launched with initial capital from an undisclosed anchor investor and targets the expanding infrastructure of Bittensor, a decentralized network that supports AI development via specialized subnets. These subnets cover diverse functions such as computing, marketplaces, and identity management. According to Yuma, the network’s 128 active subnets hold a combined value exceeding $900 million, although independent tracker Taostats estimates the subnet value at closer to $300 million. The TAO token itself maintains a market capitalization nearing $2.4 billion.
Institutional demand for Bittensor-related assets has surged alongside the ecosystem’s growth. For example, Grayscale increased its TAO allocation in its Decentralized AI Fund during the latest quarterly rebalance, although TAO’s share has since decreased as other projects like Near Protocol gained prominence. Meanwhile, Bitwise has filed with the US Securities and Exchange Commission (SEC) to launch a TAO Strategy ETF, and Grayscale has submitted paperwork to convert its Bittensor Trust into a spot TAO exchange-traded fund listed on NYSE Arca, pending approval.
The rise of decentralized AI platforms like Bittensor gained further attention amid recent US regulatory actions restricting access to some AI models by Anthropic over national security concerns. Critics pointed out that dependency on centralized AI providers entails risks when government-imposed controls or export limitations come into play. Yuma and others view decentralized networks, where AI infrastructure is distributed across blockchain-based nodes, as an alternative with growing investor interest.
Although the Commerce Department temporarily suspended public access to Anthropic’s Fable 5 and Mythos 5 models, access to Mythos 5 has since been restored, and reports suggest a potential easing of restrictions. This evolving regulatory landscape has heightened institutional appetite for decentralized AI solutions that offer more resilient and open network architectures.