DCG-backed Yuma launches fund for Bittensor TAO exposure

Yuma, an investment firm backed by Digital Currency Group, launched the Yuma Total Market Fund on Thursday to provide institutional investors exposure to Bittensor’s native TAO token and a basket of AI-focused subnet tokens. The fund opened with seed capital from an undisclosed anchor investor.

The vehicle bundles direct holdings of TAO with multiple subnet tokens so institutions can access the broader Bittensor network through a single product rather than buying individual subnet tokens. Yuma says the Bittensor network supports specialized subnets across compute, marketplaces and identity.

Yuma reports the network has 128 subnets with a combined valuation above $900 million. An independent network tracker shows a lower combined subnet valuation near $300 million. CoinMarketCap lists TAO’s market capitalization at about $2.4 billion.

Institutional interest in Bittensor and decentralized AI tokens has increased this year. Grayscale raised TAO’s weighting to 43% in its Decentralized AI Fund in April; TAO’s allocation later declined to about 20% while Near Protocol’s NEAR now makes up roughly 44% of that fund. Bitwise filed with the U.S. Securities and Exchange Commission for a TAO Strategy ETF, and Grayscale submitted an amended registration to convert its Bittensor Trust into a spot TAO ETF that would list on NYSE Arca if approved.

The U.S. Commerce Department temporarily suspended public access to Anthropic’s Fable 5 and Mythos 5 models on national security and export control grounds. Access to Mythos 5 was later restored and officials are expected to permit public access to Fable 5 soon. Zach Pandl, head of research at Grayscale, described the government order as ‘highlighting the risks of centralized control of AI’ and expects demand for decentralized AI networks such as Bittensor to increase.

Bittensor’s subnet model lets separate teams operate focused services within the network and issue tokens tied to specific functions. Supporters say the architecture spreads compute and governance across many participants rather than concentrating control with a few providers. Data sources and market participants disagree on the current size and liquidity of the subnet market, reflected in the differing valuations.

Yuma says the fund is intended to reduce technical and operational hurdles for institutions that want exposure to a basket of AI-related crypto assets while maintaining direct exposure to the Bittensor protocol and TAO.