Grayscale Investments is aiming to launch the first US-based Bittensor ETF, following its filing of a registration statement with the Securities and Exchange Commission.
Key Takeaways
- Grayscale filed an S-1 form with the SEC to convert its Bittensor Trust into an ETF called the Grayscale Bittensor Trust ETF.
- If approved, it will be the first US ETF offering spot exposure to Bittensor’s TAO token.
- The filing came shortly after Bittensor’s first halving event, which cut TAO issuance from 7,200 to 3,600 tokens per day.
- TAO’s price rebounded to $222 following the ETF news, recovering from earlier dips.
What Happened?
Grayscale submitted an S-1 registration form to the SEC on Tuesday in a bid to transform its private Bittensor Trust into a publicly traded exchange-traded fund. If greenlit, the ETF will list under the ticker GTAO on NYSE Arca, marking the first ETF in the US tied directly to the Bittensor (TAO) token.
This move expands Grayscale’s crypto ETF lineup and comes at a time when interest in AI-linked digital assets is on the rise, particularly after TAO’s first halving event earlier in December.
Today we filed the initial S-1 for Grayscale Bittensor Trust (ticker: $GTAO) with the @SECGov
— Grayscale (@Grayscale) December 30, 2025
This milestone is the next step in converting $GTAO to an ETP, which would make it the first $TAO ETP in the U.S. and another first for Grayscale.
Read the S-1:… pic.twitter.com/2qg6AgqYOg
Grayscale Bets Big on AI and Bittensor
Grayscale’s Bittensor Trust has existed privately since 2024 but began public quotation on the OTCQX earlier this month under the same GTAO ticker. With the new filing, Grayscale seeks to upgrade the trust into a spot ETF, allowing broader exposure to institutional and retail investors.
- The ETF will be backed 100% by TAO, the native token of the Bittensor Network.
- The Trust may include staking rewards in the future, though staking is currently restricted until conditions allow.
- Bank of New York Mellon is listed as the transfer agent.
- Coinbase is the prime broker and custodian, while BitGo is included as an additional custodian.
This strategic filing arrives just weeks after Bittensor underwent its first token halving, reducing daily token production by 50 percent. Similar to Bitcoin’s halving model, this supply shock is expected to increase TAO’s scarcity and potentially support its long-term price growth.
Growing ETF Footprint
Grayscale already manages several spot and futures crypto ETFs including those tied to Bitcoin, Ethereum, Solana, XRP, Dogecoin, and Chainlink. The firm is also eyeing products for Avalanche and other altcoins.
Grayscale’s Chief Strategy Officer said in the filing:
Moreover, Grayscale noted that NYSE Arca has received regulatory approval to enable the Trust to create and redeem shares in exchange for in-kind TAO transactions. This model will likely continue after the ETF conversion, mirroring processes used by other spot crypto ETFs.
CoinLaw’s Takeaway
Honestly, this is a bold and timely move by Grayscale. In my experience, filing for a spot ETF right after a network halving is a smart strategy. It rides on both the buzz of a supply shift and growing investor appetite for AI and decentralized computing. The Bittensor network is not just another blockchain project but it’s building a future where AI ecosystems are decentralized and more open. This ETF could be the gateway for traditional investors to enter that world without the technical baggage of managing TAO tokens themselves. I found the timing and the lineup of trusted institutions like Coinbase and BNY Mellon to be strong signals that Grayscale is serious about leading in the AI crypto space.
