Barry Silbert reenters crypto with AI-focused Yuma Asset Management

Barry Silbert is back with Yuma Asset Management, a fund built to invest in AI networks like Bittensor. After years of regulatory and market setbacks, the DCG founder is seeding the fund with $10 million in a fresh attempt to regain his footing in the next phase of crypto infrastructure.

On Oct. 9, Bloomberg reported that Barry Silbert, the founder of Digital Currency Group, launched Yuma Asset Management, a new firm designed to channel capital into artificial intelligence infrastructure built on the Bittensor network.

The fund, initially seeded with $10 million from DCG, will target early-stage teams developing decentralized AI systems and tools, rewarding their output through tokens like TAO. Silbert, who also leads Grayscale Investments, said he hasn’t felt this level of excitement since Bitcoin’s early days, describing Yuma as a vehicle for institutional investors to gain structured exposure to crypto’s intersection with AI.

Silbert’s conviction in Bittensor and the promise of AI tokens

Silbert’s conviction stems from a belief that Bittensor offers a tangible, functional alternative to the crowded field of what he calls AI pretenders. He specifically pointed to BitMind, a tool built on the network that identifies deepfake images, as evidence of the ecosystem’s capacity to produce practical applications. This focus on utility is a direct rebuttal to the dozens of crypto projects he claims are simply riding the AI hype train without substantive technology.

Per the report, the fundraising strategy for Yuma is tailored for high-risk, high-reward investors. Silbert is targeting venture-capital-like backers, including wealthy individuals and institutions, who can tolerate a total loss while betting on a monumental win.

While Silbert declined to specify a precise target or timeline, he contextualized the ambition by noting that the total capital raise for the two funds would not exceed Bittensor’s own market valuation, which currently sits at approximately $3 billion.

To make this nascent ecosystem attractive for institutional capital, Yuma’s funds are being structured around familiar market concepts. Bloomberg said one fund is being marketed as analogous to the Nasdaq, while the other is compared to the Dow Jones Industrial Average.

The launch of Yuma last year occurred just weeks after the presidential election, a timing that coincides with a notable shift in the crypto-political climate. This move follows a difficult period for DCG, which faced a federal probe, layoffs, and fraud allegations in the aftermath of the FTX collapse. The exchange’s implosion saw asset prices plummet and regulatory scrutiny intensify.