Deutsche Digital Assets, a Germany-regulated provider of exchange-traded products (ETPs), plans to list an ETP to give investors exposure. A cryptocurrency linked to decentralized artificial intelligence with the help of Nasdaq Nordic-listed broker Safelo (SFL), the companies said on Wednesday.
The Safelo Bittensor Stacked TAO ETP will trade on the SIX Swiss Exchange with the ticker STAO over the next few weeks.
According to a press release, the product is physically backed by TAO tokens held in cold storage with a regulated custodian. Investors will receive returns based on both TAO’s price fluctuations and staking rewards, which are automatically reinvested into the fund with a maximum fee of 1.49%.
There is growing interest in Bittensor, a decentralized network for AI that rewards people for contributing data and computing power to accomplish tasks like text translation, fraud detection, image recognition and more esoteric goals like predicting the structure of complex protein chains.
An asset management approach to the Bittensor universe has already been launched by Digital Currency Group founder Barry Silbert, whose Yuma Asset Management provides wealthy investors with exposure to “subnet” tokens, the protocol-native crypto assets of Bittensor’s decentralized contributor network.
“Bittensor is a prime example of how decentralized technology and AI are uniting to reshape the future of value creation. Together with DDA, we are making it possible for investors to easily access this innovation through a regulated and transparent investment vehicle.” said Emily Moritz, CEO of Safelo.
The Suffalo Bittensor Stacked TAO ETP is a total return exchange-traded product that tracks the Caco Suffalo Stacked Bittensor Index (KSSTAO).
In July, UK exchange Arcex said it had agreed to buy Deutsche Digital Assets for an undisclosed sum.