DCG makes another move in Bittensor: Yuma Asset Management unit established, two flagship funds to be launched

DCG's subsidiary Yuma has established Yuma Asset Management, backed by a $10 million anchor investment from DCG, to launch two flagship funds focused on Bittensor's subnet tokens. This initiative aims to provide institutional and qualified investors with a standardized entry point into the decentralized AI ecosystem. The two funds are:

Yuma Subnet Composite Fund: Offers broad exposure to all active Bittensor subnets, functioning like a "Nasdaq Composite Index" for decentralized AI.
Yuma Large Cap Subnet Fund: Concentrates on top market-cap subnet tokens, similar to a "subnet version of the Dow Jones Industrial Average."

Bittensor, described as the "World Wide Web of AI," challenges centralized AI dominance by enabling permissionless AI model development. Its native token, TAO, incentivizes contributors, and Yuma actively supports subnet development, having validated over 120 subnets and partnered with institutions like BitGo and the University of Connecticut.

DCG's strategic move mirrors its early Bitcoin approach, using familiar investment frameworks to attract mainstream capital to emerging AI blockchain assets. Despite rapid subnet growth, challenges remain in quality, originality, and achieving AI results comparable to centralized giants.

Author: Zen, PANews

Over the past three days, the decentralized AI network Bittensor has once again become a hot topic and a market focal point. According to Coingecko data, as of October 15th, the price of the Bittensor ecosystem's TAO token has continued to rise, rising from approximately $280 to over $450, a gain of over 50%.

The main reason behind this surge in interest may be the continued investment of Yuma, a subsidiary of DCG. On October 9th, Yuma announced the establishment of Yuma Asset Management, with a $10 million anchor investment from DCG. The company also launched two fund strategies focused on "subnet tokens," aiming to provide a standardized entry point into the Bittensor ecosystem for institutional and qualified investors.

DCG, Yuma, and Bittensor, the "World Wide Web of AI"

Yuma, a subsidiary of Digital Currency Group (DCG), was founded in 2024 by DCG founder Barry Silbert to support the Bittensor decentralized artificial intelligence network. Positioned as a development studio and accelerator, Yuma invests in, builds, and expands computing infrastructure within the Bittensor ecosystem, helping research teams and entrepreneurs build projects on the network.

Barry Silbert

Since DCG first invested in Bittensor in 2021, Silbert has been focused on the long-term potential of the field, claiming that it is the most exciting thing for him since Bitcoin. He believes that the current AI field is dominated by a few giants such as OpenAI and Google, forming a "walled garden", and Bittensor aims to create a "World Wide Web of AI" that allows anyone to build and use AI models without permission.

In the Bittensor network, subnets are parallel networks divided by specific AI applications, such as text translation, fraud detection, and image recognition. The network incentivizes contributors through its native token, TAO, and developers and computing power providers who run nodes to complete machine learning tasks and receive TAO rewards.

Yuma has been deeply involved in the construction and operation of Bittensor's subnets. By providing seed funding, technical guidance, and community resources, Yuma facilitated the launch of multiple subnet projects in the early stages of the Bittensor ecosystem. Currently, Yuma is actively validating over 120 subnets, providing capital support to 15 subnet operation teams, and has brought in renowned institutions such as BitGo, Copper, and Crypto.com as network validator node partners.

Additionally, Yuma partnered with the University of Connecticut (UConn) in June to create a project focused on bringing together specialized machine learning infrastructure, called “BittBridge,” making the university one of the first academic institutions to build on the Bittensor network.

To further strengthen its infrastructure construction capabilities, on October 6, Yuma announced the appointment of Greg Schvey and Jeff Schvey, co-founders of encryption data provider TradeBlock, as Chief Operating Officer and Chief Technology Officer, respectively, to strengthen operations and technical management and form synergy with the asset management business to be launched a few days later.

Yuma establishes asset management department and will launch two Bittensor network-related funds

On October 9, 2025, Yuma announced the establishment of Yuma Asset Management, a subsidiary of the company, to create a new investment channel for institutions and qualified investors to enter the Bittensor AI ecosystem. DCG provided $10 million as the initial anchor investment for the asset management division.

According to Yuma, the new division will launch two flagship fund products, both of which will invest in subnet tokens of the Bittensor network.

The Yuma Subnet Composite Fund invests in tokens across all of Bittensor's active subnets, weighted by market capitalization. Similar to a subnet-based "Nasdaq Composite Index," it provides investors with broad exposure to the entire subnet sector. The fund aims to track the overall performance of all subnets within the Bittensor ecosystem, serving as a sort of "market index" for decentralized AI.

Another Yuma Large Cap Subnet Fund focuses on top subnet tokens with the largest market capitalization, acting like a "subnet version of the Dow Jones Industrial Average," providing investors with concentrated exposure to the most influential subnets. In other words, it selects subnets within the Bittensor network that lead in scale and influence for investment, pursuing steady returns from leading sector players.

Both funds invest in the native crypto assets of the Bittensor subnets (i.e., the tokens issued by each subnet), which are denominated and traded in TAO. Because the Bittensor ecosystem is still relatively unknown and technically challenging to outsiders, direct participation is difficult. Yuma Asset Management aims to reduce this barrier through structured fund products.

DCG noted that it's difficult for ordinary investors to access the Bittensor network, and that leading AI companies like OpenAI and Anthropic are mostly private, making it difficult to invest in the AI revolution. Against this backdrop, Yuma Asset Management, acting as a bridge, provides an "early and unique" path for more institutional capital to participate in the decentralized AI movement.

It's worth noting that Silbert adopted a similar strategy in the early days of Bitcoin. Back in 2013, he founded the Bitcoin Investment Trust, which introduced traditional investors to Bitcoin through a trust fund. This product later evolved into the well-known Grayscale Bitcoin Trust (GBTC). Now, in the Bittensor space, he's again employing the idea of indexed investment products, using two funds to cover the entire sub-sector and its leading projects. This design draws on the success of traditional stock market indices, using a familiar framework to attract mainstream investors to emerging AI blockchain assets.

With a multi-layered layout, DCG is betting heavily on decentralized AI

As one of the most influential investors in the crypto industry, DCG has invested heavily in Bitcoin and blockchain startups over the past decade, nurturing a series of industry pillars, including Grayscale, the Genesis exchange, and CoinDesk (sold to Bullish in 2023). As the industry evolves, DCG is seeking new growth areas and intends to maintain its leadership by betting on decentralized AI.

DCG has adopted a multi-layered approach to its investment in Bittensor and decentralized AI. Grayscale, DCG's investment arm, launched the Grayscale Bittensor Trust last year, with assets under management approaching $14.86 million as of October 14th. The establishment of a subnet fund through Yuma represents a further proactive move by DCG to establish a more flexible investment channel.

To some extent, DCG's transformation strategy is closely related to its own situation. Genesis, a subsidiary of DCG, entered bankruptcy reorganization in 2023, facing regulatory investigations and reputational challenges. Against this backdrop, DCG's bet on decentralized AI can be seen as a proactive move by Silbert to seek the "next chapter." Yuma is currently attracting venture-minded backers, including high-net-worth individuals and institutional investors.

The number of subnets in the Bittensor Network is rapidly expanding. By mid-2025, the network will have 128 subnets, covering a wide range of use cases, from anti-fraud, edge-to-edge privacy/federated learning, to synthetic identity/data. According to Yuma's semi-annual report, the number of subnets increased by 50% in the second quarter, while network activity indicators also rose during the same period. Against this backdrop, the expansion of subnets is expected to increase demand for TAO and its subnet tokens, thereby strengthening TAO's role as a foundational incentive layer.

However, despite the rapid growth in the number of Bittensor subnets, they are not outstanding in terms of quality and originality, and there are still technical and market uncertainties.

Furthermore, whether Bittensor can truly produce AI results comparable to those of centralized giants by pooling computing power and models through token incentives remains to be seen. With the launch of more subnets and the influx of institutional capital, Bittensor and Yuma Asset Management will seek new opportunities and a balance between technological iteration and market challenges.