Grayscale Launches Bittensor and Sui Trusts for Accredited Investors

• Grayscale introduces Bittensor Trust and Sui Trust for accredited investors, focusing on decentralized AI and scalable blockchain.
• Both trusts will have a 2.5% annual fee and no upfront or performance fees, targeting long-term investors.
• Grayscale aims to have shares of the new trusts quoted on a secondary market, though regulatory approval is uncertain.

Grayscale Investments has announced the launch of two new cryptocurrency investment trusts Grayscale Bittensor Trust and Grayscale Sui Trust. These offerings aim to provide approved investors with targeted exposure to the expanding fields of decentralized artificial intelligence (AI) and scalable blockchain technology.

Targeted Investment Options 

According to Grayscale, the Bittensor Trust (TAO) and Sui Trust (SUI) are designed as Delaware Grantor Trusts, passively holding their respective underlying assets. 

The Bittensor Trust focuses on TAO, a token used to incentivize open-source AI development within the Bittensor protocol. The Sui Trust is dedicated to SUI, the token that powers the Sui blockchain, which supports scalable decentralized applications through its advanced programming language and architecture.

Both trusts will raise assets through private placement offerings available to accredited investors. The trusts carry a 2.5% annual fee and no upfront or performance fees, reflecting Grayscale’s ongoing strategy to expand its portfolio of digital asset investment products. Grayscale intends to have shares of both trusts quoted on a secondary market, though there is no guarantee of regulatory approval. Investors should be prepared for long-term holdings.

Expansion of Grayscale’s Product Suite

We are excited to add Bittensor and Sui to our product suite, and believe Bittensor is at the center of the growth of decentralized AI, while Sui is redefining the smart contract blockchain, said Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research. With the launch of these new trusts, Grayscale continues to offer familiar products that enable access to cutting-edge tokens in the crypto ecosystem.

Availability and Regulatory Considerations

Eligible individual and institutional accredited investors can daily subscribe to the new trusts. These are similar to Grayscale’s other single-asset investment trusts and are some of the first investment products that exclusively invest in Bittensor Protocol (TAO) and Sui (SUI) backed tokens. Nevertheless, it is still unclear whether there will be regulatory approval for secondary market listings and investors need to consider possible risks.