Grayscale has partnered with Republic to offer three crypto funds covering DeFi, decentralized AI and data networks, each with a $2,500 minimum. U.S. access is limited to verified accredited investors, and the private placement shares carry resale restrictions and the risk of a total loss.
Grayscale announced the agreement on Oct. 15, naming the Grayscale DeFi Fund, Grayscale Decentralized AI Fund and Grayscale Data Network Trust as the initial products available through Republic. Republic said eligible participants can gain exposure to the underlying digital assets without buying, storing, or safeguarding the tokens themselves.
Republic co-CEO Andrew Durgee said the partnership gives users access early in the funds' life cycles, a stage traditionally limited to institutional investors, with a minimum investment of just $2,500.
U.S. buyers must be verified accredited investors
For American participants, Republic's disclosures specify that subscriptions take place under Rule 506(c) of Regulation D, with access restricted to accredited investors whose status must be verified. Under SEC staff guidance, individuals can qualify through a net worth exceeding $1 million, excluding their primary residence.
Outside the U.S., Republic's disclosures describe a separate Regulation S offering for qualifying non-U.S. persons in offshore transactions, subject to local requirements and transfer restrictions.
What the three funds hold
Grayscale described its DeFi Fund, ticker DEFG, as a market-cap-weighted basket of protocols supporting lending, trading and asset management. Republic's fund page lists Uniswap, Aave, Ondo, Ethena, Curve and Lido DAO as its six holdings.
The Decentralized AI Fund provides exposure to blockchain protocols involved in computing, storage and AI services. Republic lists NEAR Protocol, Bittensor, Render and Filecoin as its holdings.
The Data Network Trust provides exposure to DATA, the native token of a blockchain designed to source, verify and license information used to train AI models. A Sept. 24 SEC filing identifies the issuer as a Delaware business trust formed in 2025.
Shares carry resale limits and loss risk
Under the offering terms published on Republic, the shares are restricted securities with substantial limits on resale and transfer, and investors cannot redeem them through the products. Republic's disclosures warn that the private placements are speculative and illiquid, with investors facing the possibility of losing their entire investment.
Source: crypto.news
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