Yuma, an investment firm backed by Digital Currency Group, has launched the Yuma Total Market Fund to give institutional investors diversified exposure to the Bittensor decentralized AI ecosystem in a single vehicle. The fund is designed to track both Bittensor’s native TAO token and a basket of AI-focused subnets without requiring investors to hold or select individual subnet tokens.

In a Thursday announcement, Yuma said the fund began with seed capital from an undisclosed anchor investor. The launch comes as asset managers increasingly look for regulated products tied to decentralized AI networks, following broader institutional interest in blockchain-based alternatives to centralized AI providers.

Key takeaways

• Yuma’s fund targets diversified exposure to Bittensor by combining TAO holdings with a basket of AI subnet exposure under one investment strategy.
• The fund is positioned as a simpler entry point for investors who want Bittensor exposure without manually building a subnet portfolio.
• Bittensor’s subnet economy is often cited as very large, but network data from Taostats indicates the combined subnet value is closer to $300 million than higher estimates.
• Institutional allocation shifts already signal growing interest in TAO and the broader decentralized AI theme, including changes in Grayscale’s Decentralized AI Fund.
• Regulatory product momentum continues, with filings and conversions aimed at bringing TAO exposure into ETF wrappers.

A one-stop fund for Bittensor exposure

According to Yuma, the Yuma Total Market Fund provides exposure to TAO and a basket of AI-oriented subnets through a single investment vehicle. The stated intent is to reduce complexity for institutions that want exposure to the ecosystem’s “total market” rather than picking specific subnets themselves.

Yuma also framed the timing around expanding institutional demand for decentralized AI products. Bittensor, the network behind the ecosystem, supports AI infrastructure and application development using specialized subnets that span areas including compute, marketplaces, and identity.

How big is the subnet economy?

Yuma pointed to Bittensor’s scale, stating that its 128 subnets represent more than $900 million in combined value. However, network tracker Taostats shows a combined subnet value closer to $300 million.

For investors, the difference matters because it can affect how the “basket” inside the fund is sized, weighted, and interpreted relative to the overall ecosystem. Even if TAO remains the focal point for market attention, subnet value is relevant for understanding how diversified exposure may behave when network activity, demand for specific subnet services, or token economics shift.

Institutional interest in TAO is evolving

Yuma’s announcement arrives amid a broader institutional pivot toward decentralized AI exposure, particularly through TAO. Earlier this year, Grayscale increased TAO’s weighting in its Grayscale Decentralized AI Fund to 43% during the fund’s quarterly rebalance in April. Since then, the allocation has reportedly fallen to about 20%.

As Grayscale’s rebalancing progressed, Near Protocol’s NEAR moved into the lead position within the fund at roughly 44%. The shifting weights underscore that decentralized AI exposure inside institutional portfolios is not static—asset managers are adjusting allocations as constituent components change in relative performance, risk, and market interest.

TAO’s broader institutional visibility has also been reflected in its market capitalization being cited at nearly $2.4 billion, according to CoinMarketCap.

ETF momentum and product building

The fund launch also fits a larger wave of attempts to package TAO exposure into familiar exchange-traded wrappers. In April, Bitwise filed for a TAO Strategy ETF with the US Securities and Exchange Commission (SEC). Separately, Grayscale submitted an amended registration statement aimed at converting its existing Bittensor Trust into a spot TAO exchange-traded fund that—if approved—would list on NYSE Arca. The SEC filing is available through its public EDGAR archive.

While Yuma’s product is a fund and not necessarily an ETF, the parallel push highlights a shared strategy among managers: broaden access to TAO and decentralized AI networks in forms that institutions can more easily allocate to, benchmark, and trade compared with direct, token-by-token exposure.

Why decentralized AI is back in the spotlight

Interest in decentralized AI has also been reinforced by renewed attention to the risks of reliance on a single provider. The renewed debate picked up momentum after the US Commerce Department suspended public access to Anthropic’s Fable 5 and Mythos 5 models over national security and export control concerns.

Grayscale head of research Zach Pandl argued at the time that the restrictions highlighted the dangers of centralized control over AI systems, adding that he expected demand for decentralized AI such as Bittensor and its TAO token to rise as investors look for alternatives to centralized model providers. Earlier coverage also linked the shutdown to a broader case for decentralized approaches to AI infrastructure.

Since then, the situation appears to have eased: the Commerce Department restored access to Mythos 5 on Friday, and Axios reported Saturday that the Trump administration is expected to allow Anthropic to resume public access to Fable 5 as soon as next week.

Even with the access restoration, the episode illustrates the kind of operational and policy risk that can make “provider diversity” an investment theme—exactly the idea behind products that bundle exposure across decentralized ecosystems rather than hinging on a single company’s model availability.

Investors should watch how Yuma’s fund constructs its subnet basket over time and how quickly institutional allocations shift between TAO-centric exposure and broader subnet diversification. With multiple TAO ETF-related filings in motion and policy-driven headlines repeatedly reshaping the decentralized AI narrative, the next key signal will be how regulators and asset managers respond as demand for decentralized AI wrappers grows.

Yuma, a Digital Currency Group-backed investment company, has launched a fund that gives institutional investors diversified exposure to the Bittensor ecosystem, as asset managers expand investment products tied to decentralized AI.

According to a Thursday announcement, the Yuma Total Market Fund provides exposure to Bittensor’s native TAO token and a basket of AI-focused subnets through a single investment vehicle. The strategy is intended to simplify access to the broader Bittensor ecosystem without requiring investors to select individual subnet tokens.

The fund launched with seed capital from an undisclosed anchor investor.

Bittensor is a decentralized network that supports the development of AI infrastructure and applications through specialized subnets spanning areas such as compute, marketplaces and identity. According to Yuma, the network’s 128 subnets represent more than $900 million in combined value. However, data from network tracker Taostats shows a combined subnet value closer to $300 million.

TAO, the native token of the Bittensor ecosystem, has a market capitalization of nearly $2.4 billion. Source: CoinMarketCap

Institutional interest in the Bittensor ecosystem has grown alongside the network’s expanding subnet economy. In April, Grayscale increased TAO’s weighting in its Grayscale Decentralized AI Fund to 43% during the fund’s quarterly rebalance. TAO’s allocation has since fallen to about 20%, with Near Protocol’s NEAR now comprising the fund’s largest holding at roughly 44%.

Asset managers are also seeking to broaden investor access to TAO. Bitwise filed for a TAO Strategy ETF with the US Securities and Exchange Commission (SEC) in April, while Grayscale submitted an amended registration statement to convert its existing Bittensor Trust into a spot TAO exchange-traded fund that would list on NYSE Arca if approved.

Grayscale Bittensor Trust (TAO) application with the SEC. Source: SEC

Related: Amazon warning triggered US crackdown on Anthropic AI models: Reports

Anthropic restrictions renew focus on decentralized AI

The case for decentralized AI, which distributes AI infrastructure and computing across blockchain-based networks rather than relying on a single provider, gained renewed attention after the US Commerce Department suspended public access to Anthropic’s Fable 5 and Mythos 5 models over national security and export control concerns.

At the time, Grayscale head of research Zach Pandl said the restrictions underscored the risks of relying on centralized AI providers. The government order limiting access to Anthropic’s Fable 5 and Mythos 5 “highlights the risks of centralized control of AI,” Pandl said. “We expect demand for decentralized AI, like Bittensor and its TAO token, to rise as investors seek alternatives.”

The restrictions appear to be easing. The Commerce Department restored access to Mythos 5 on Friday, and Axios reported Saturday that the Trump administration is expected to allow Anthropic to resume public access to Fable 5 as soon as next week.

Magazine: How AI just dramatically sped up the quantum risk for Bitcoin

The ongoing artificial intelligence stock frenzy has pulled in capital from across the market, from traditional metals, considered the safest assets, to crypto, considered the riskiest.

Gold dropped below $4,000 for the first time since November earlier this week, silver has lost more than half its value from its high, and bitcoin has slipped to nearly $58,000.

The three selloffs are not a coincidence. For much of the past two years, they have been, to a large degree, the same trade, and now the same forces are unwinding it.

That trade even has a name, the “debasement” trade. It is the bet that heavy government spending and rising national debt will slowly erode the value of paper money, which pushes investors toward scarce assets that no government can print more of.

Gold and silver are the oldest versions of that bet, while bitcoin, with a supply capped at 21 million coins, got marketed as the digital version. Through 2025, as the dollar looked vulnerable, money poured into all three, and they were treated as one basket.

Stocks tied to digital assets are sliding faster than the broader US market, reinforcing an increasingly visible split between crypto-focused equities and the S&P 500. The latest comparison comes from The Kobeissi Letter, which points to steep drawdowns at major crypto businesses as technology selloffs ripple through risk assets.

According to The Kobeissi Letter, Coinbase and Circle shares are down 69% and 72%, respectively, from their all-time highs. Those declines outpace drops seen in several large technology names—such as Oracle, Salesforce, Netflix and Palantir—each down between 48% and 57% from peak levels, while the S&P 500 has retreated about 3.5% from its recent high.

Key takeaways

• Crypto-related equities are falling much more sharply than the S&P 500, according to The Kobeissi Letter.
• Investor pressure is tied not only to broader risk-off moves, but also to weaker digital asset markets and policy uncertainty in the US.
• Bitcoin’s drop below $60,000 and Ether sliding toward $1,500 have intensified selling across the sector.
• Corporate earnings stress is compounding the downturn, with Coinbase missing Wall Street expectations in its latest quarterly report.
• Despite continued institutional activity, 21Shares says crypto’s four-year market cycle remains a key driver of prices into 2026.

Crypto equities break away from the broader market

The widening gap between crypto-adjacent stocks and the S&P 500 appears tied to a combination of macro pressure and sector-specific risk. The pullback in technology equities reflects growing concerns that rapid advances in artificial intelligence could disrupt existing business models across parts of the sector. Within that environment, crypto businesses face additional headwinds.

Even as semiconductor stocks have managed to hold up better through periods of volatility, crypto-related shares have remained under pressure. The Kobeissi Letter’s comparison suggests the underperformance is not just a beta story tied to general market weakness—it also reflects how quickly public equities react to sentiment around digital asset performance.

Digital asset selling feeds equity declines

Market conditions in crypto have worsened alongside equities. The article notes that Bitcoin fell below $60,000 this week and extended its decline to more than 54% from its October peak. Ether has likewise faced heavy selling, recently dropping to around $1,500—about 69% below last year’s high.

When crypto prices slide, revenue expectations for exchanges, custody providers, and payments platforms can come under pressure, and investors often reprice the sector more aggressively than the general market. That dynamic helps explain why Coinbase and Circle have experienced drawdowns that exceed those of several major technology companies.

Broader digital asset policy is also part of the backdrop. The report points to uneven progress on comprehensive crypto market structure legislation in the United States, a factor that continues to influence how investors value the long-term prospects of crypto businesses.

Earnings disappointment adds another layer

Financial results have not helped. The coverage highlights that Coinbase reported first-quarter results that missed Wall Street expectations. As described in earlier reporting from Cointelegraph, the company’s revenue fell 21% from the prior quarter and it posted a loss of $1.49 per share, compared with analysts’ expectations for earnings of $0.27 per share.

For investors, earnings misses during a period of declining crypto market activity can have outsized impact: they reinforce concerns about transaction-driven revenues and trading volume sensitivity. In short, equity investors appear to be dealing with both the market-level hit from weaker coin prices and company-level pressure from the latest quarterly numbers.

21Shares trims 2026 expectations, but sees institutional progress

While public equities are under strain, institutional participation remains a key part of the crypto narrative. In a midyear outlook, 21Shares lowered its expectations for 2026, arguing that digital asset prices have underperformed relative to underlying fundamentals.

According to the report, institutional adoption is still strengthening—particularly in stablecoins, tokenization, and prediction markets. However, 21Shares emphasizes that the dominant force behind crypto prices continues to be Bitcoin’s four-year cycle.

In the same outlook, 21Shares states that increasing institutional ownership may have moderated Bitcoin’s drawdowns but has not fundamentally changed the asset’s cyclical behavior. The firm also indicated it previously forecast the four-year cycle could become obsolete, but has since walked back that view, saying the cycle is “evolving, but it has not broken yet.”

The argument matters for investors because it frames market volatility as more structural than purely sentiment-driven. If Bitcoin’s cycle remains intact, rallies could be more dependent on timing and macro liquidity than on incremental improvements in on-chain or institutional usage metrics—an outlook that can influence positioning across both crypto assets and crypto equities.

What to watch next

Investors will likely focus on whether crypto price action stabilizes—especially around the $60,000 level for Bitcoin and the $1,500 area for Ether—as well as whether upcoming corporate reports from major crypto platforms show earnings pressure easing or continuing. At the same time, market participants will watch how US legislative progress advances, since regulatory clarity (or its absence) continues to shape valuation assumptions for the sector.