Grayscale partners with Republic to offer 3 crypto funds from $2,500

Grayscale has partnered with Republic to make three crypto investment products covering decentralized finance, artificial intelligence, and data networks available to eligible investors with a $2,500 minimum investment.

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.

Through the arrangement, Republic said eligible participants can gain exposure to the underlying digital assets without buying, storing, or safeguarding the tokens themselves.

Describing the agreement, Republic co-CEO Andrew Durgee said:

“Republic’s mission focuses on digital assets and investor access.”

Durgee said the partnership gives Republic users access early in the funds’ life cycles, which he described as a stage traditionally limited to institutional investors, with a “minimum investment of just $2,500.”

Grayscale’s $2,500 offerings require verified U.S. investor eligibility

For American participants, Republic’s offering 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, either alone or together with a spouse or partner.

An alternative income test requires more than $200,000 individually, or $300,000 with a spouse or partner, in each of the previous two years, according to the guidance. Applicants using that route must reasonably expect to reach the same income level in the current year.

Certain professional credentials also provide a route to eligibility, the SEC staff explained. Holders of Series 7, Series 65 or Series 82 licenses in good standing can qualify, alongside other categories such as knowledgeable employees investing in a private fund.

For entities, the same guidance lists several qualifying categories, including certain organizations with assets exceeding $5 million and entities whose equity owners are all accredited investors.

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.

Grayscale DeFi Fund holds six tokens after earlier portfolio changes

Within the product lineup, Grayscale described its DeFi Fund, identified by ticker DEFG, as a market-cap-weighted basket of protocols supporting financial services such as lending, trading and asset management.

Republic’s fund page lists Uniswap, Aave, Ondo, Ethena, Curve and Lido DAO as its six holdings, represented by UNI, AAVE, ONDO, ENA, CRV and LDO.

Earlier portfolio changes explain how the basket reached its current composition. As crypto.news reported on May 7, Grayscale removed Aerodrome Finance’s AERO token and added Ethena during its first-quarter fund review.

According to that report, the manager sold AERO and portions of other components, then used the proceeds to purchase ENA under the CoinDesk DeFi Select Index methodology.

At the May 1 snapshot cited in the coverage, UNI accounted for 35.22% of the fund, followed by AAVE at 21.36% and ONDO at 19.83%. ENA entered at 13.59%, while CRV and LDO represented 5.27% and 4.73%, respectively.

In its Aug. 6 portfolio coverage, the publication reported that Grayscale subsequently reduced its UNI position and distributed the proceeds among existing components.

Grayscale’s allocations as of Aug. 3 placed UNI at 34.16%, ONDO at 25.44% and AAVE at 19.97%, according to that report. ENA, CRV and LDO held the remaining 12.19%, 4.42% and 3.82%.

AI fund holds four assets while DATA trust targets training-data infrastructure

For its second offering, Grayscale said 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 the fund’s holdings, using the tokens NEAR, TAO, RENDER and FIL.

The August portfolio report also documented changes within that basket. According to Grayscale’s published allocations, the manager sold some NEAR and purchased the remaining components proportionally, leaving NEAR as the largest holding at 31.35%.

Bittensor followed at 29.15%, with Render at 21.59% and Filecoin at 17.91%, the report said.

For the third product, Grayscale said its 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.

In the announcement, the manager described an onchain record covering data origins, licensing conditions and compensation for contributors and rights holders.

A Sept. 24 SEC filing identifies the issuer as Grayscale Data Network Trust (DATA), a Delaware business trust formed in 2025. The amended Form D lists Grayscale Story Trust (IP) and Grayscale Trust V as previous names.

Within the same filing, the trust claimed a Rule 506(c) exemption and identified July 28, 2025, as its first-sale date.

Private placement terms restrict resale and redemption

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.

The platform also states that the shares are not registered under the Securities Act of 1933 or the Investment Company Act of 1940. Its disclosures say neither the SEC nor federal or state securities regulators have recommended or approved the investment opportunities.

According to the same terms, digital assets held by the products face custody, protocol, cybersecurity, and regulatory risks. Republic states that the investments are not FDIC-insured and that applicable SIPC protection does not cover falling investment values or investment losses.