Cryptocurrency Market Dynamics: Bitcoin's Surge and Grayscale's New AI-Focused Fund

Cryptocurrency Price Movements Today: Bitcoin Briefly Breaks Through $65,000

Grayscale has introduced a fund that includes a basket of crypto tokens focused on decentralized AI. Bitcoin (BTC) has continued its positive price movement this week, briefly rising above $65,000 on Wednesday. The cryptocurrency asset is now up roughly 12% since Friday amid improved odds for crypto-friendly candidate Donald Trump to be re-elected president and the upcoming approval of spot ether (ETH) exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). A new investment note from digital asset manager Bitwise's chief investment officer, Matt Hougan, said the listing of spot ether ETFs will send the underlying cryptocurrency of Ethereum to all-time highs above $5,000. According to Hougan, this price push higher will be due partially to the roughly 28% of total ether supply that is unavailable to these future ETFs due to being staked on the Ethereum network. This means the assets are committed to a contract for a set period of time and can't be withdrawn and sold. The ether held by the upcoming ETFs won't be staked, at least for now. Hougan adds that the ether price could be choppy at first; however, he sees all-time highs coming for ETH by year-end. Hougan previously stated his belief that spot ether ETFs will experience $15 billion in inflows over the next year and a half. On the bitcoin side, inflows into U.S. spot bitcoin ETFs haven't slowed -- Tuesday's were greater than any single day over the past two months. According to Farside Investors, $422.5 million moved into these new financial products Tuesday, which is the largest single-day amount since June 5. When combined with Monday's numbers, $723.4 million has already flowed into spot bitcoin ETFs this week. Digital asset manager Grayscale, which operates the second-largest spot bitcoin ETF (GBTC), on Wednesday announced the launch of its newest private placement investment product: the Grayscale Decentralized AI Fund, which holds crypto tokens operating in the realm of decentralized artificial intelligence (AI).

Breaking: Grayscale Launches New Fund For AI Coins

One share in Grayscale's new fund reflects value of five AI coins collectively. Grayscale, a leading crypto asset manager, has recently made global headlines by revealing its new fund for AI coins, the Grayscale Decentralized AI Fund. According to an official statement by the firm today, July 17, the mover comes as a first-ever initiative that offers users an investment vehicle focused on securities tied to decentralized AI protocols. Notably, the fund mitigates the need for users' direct involvement with digital currencies, offering them a share to invest that consists of vital fund components. Here's a brief report on the investment vehicle to better understand the development's market implications. Also Read: Grayscale, VanEck & Other Bitcoin ETF Bag Millions From Madden Securities Amid the global rise in AI and related protocols, this mover by Grayscale appears to have gained significant traction across the market. In its official release today, the firm clarified that the AI coins fund offers a form of security to users, eradicating the challenges of directly buying, storing, and safekeeping digital currencies. This fund is called as the "Grayscale Decentralized AI Fund." Meanwhile, the vital components of this fund encompass five AI-based tokens. These include Near Protocol (NEAR), Filecoin (FIL), Render (RNDR), Livepeer (LPT), and Bittensor (TAO). Intriguingly, the fund is designed to reflect the combined value of the abovementioned components. The weightage of the five tokens into one share of the fund equals NEAR - 32.99%; FIL - 30.59%; RNDR - 24.86%; LPT - 8.64%; and TAO - 2.92%. Also, it's worth mentioning that the NAV (Net Asset Value) per share as of July 16 totaled $9.97. This mover, amid the recent popularity of AI coins, has promptly gained significant traction across the crypto industry. Notably, the firm already appears to be marking monumental strides across the industry with its crypto offerings. The crypto asset manager already stages as one of the first service providers of a spot Bitcoin BTF, while an ETH ETF also appears to be in the pipeline. Additionally, tomorrow, July 18, presents as a vital date for the firm. As reported by CoinGape Media previously, the launch of the Grayscale Ethereum Mini trust shares is set to take place on the mentioned date.