Woofun AI reports that Yuma, an investment firm backed by Digital Currency Group, has launched the Yuma Total Market Fund to provide institutional investors with diversified exposure to the Bittensor ecosystem. This single investment vehicle grants access to Bittensor's native TAO token alongside a basket of AI-focused subnets, eliminating the need for investors to select individual subnet tokens. The fund commenced operations with seed capital provided by an undisclosed anchor investor.

Bittensor operates as a decentralized network facilitating AI infrastructure and applications through specialized subnets covering compute, marketplaces, and identity. Yuma asserts that the network's 128 subnets collectively represent over $900 million in value, a figure that contrasts sharply with data from network tracker Taostats, which places the combined subnet value closer to $300 million. This significant discrepancy highlights the varying methodologies used to assess the ecosystem's total market capitalization.

Institutional engagement with Bittensor has intensified as the subnet economy expands, evidenced by recent portfolio adjustments from major asset managers. In April, Grayscale increased TAO's weighting to 43% within its Grayscale Decentralized AI Fund during a quarterly rebalance, though this allocation has since declined to approximately 20%. Currently, Near Protocol's NEAR token comprises the fund's largest holding at roughly 44%, reflecting a strategic shift in asset distribution.

Beyond portfolio rebalancing, asset managers are actively pursuing regulatory pathways to broaden investor access to TAO. Bitwise filed an application for a TAO Strategy ETF with the US Securities and Exchange Commission in April, while Grayscale submitted an amended registration statement to convert its existing Bittensor Trust into a spot TAO exchange-traded fund. If approved, the Grayscale vehicle would list on NYSE Arca, marking a significant milestone for decentralized AI assets in traditional finance.

The argument for decentralized AI gained urgency after the US Commerce Department suspended public access to Anthropic's Fable 5 and Mythos 5 models due to national security and export control concerns. Zach Pandl, head of research at Grayscale, noted that these restrictions underscore the risks of centralized AI providers, stating, "We expect demand for decentralized AI, like Bittensor and its TAO token, to rise as investors seek alternatives."

Regulatory pressures appear to be receding as the Commerce Department restored access to Mythos 5 on Friday. reported Saturday that the Trump administration is expected to permit Anthropic to resume public access to Fable 5 as soon as next week. This rapid policy reversal suggests that while geopolitical tensions drive short-term volatility, the structural demand for decentralized alternatives remains resilient.