Grayscale’s bid to turn Bittensor into an investable Wall Street product has sent TAO surging back above $220, underscoring how spot ETF proposals can quickly refocus institutional attention — and capital — on niche crypto sectors.
What happened
- On Dec. 30, Grayscale filed an S-1 with the U.S. SEC to convert its Grayscale Bittensor Trust into a spot ETF (ticker proposal: GTAO) that would list on NYSE Arca. If approved, the fund would give U.S.-listed institutional investors price-linked exposure to Bittensor’s native TAO token.
- The filing followed Bittensor’s first halving in mid-December 2025, which cut daily TAO emissions to 3,600 tokens. With a hard cap of 21 million TAO, Grayscale frames the product as a “supply shock meets institutional demand” story aimed at curbing inflationary pressure and rewarding long-term holders.
Market reaction and mechanics
- The market reacted immediately: TAO reclaimed the $220 level and erased intraday losses as traders priced in potential new Wall Street liquidity. At the time of reporting, TAO was trading at $220.77, up about 1.05% over 24 hours (CoinMarketCap).
- According to the S-1, Coinbase would act as prime broker, while Coinbase Custody Trust Company and BitGo Trust Company would serve as custodians. The trust plans to support both in-kind and cash creation/redemption mechanisms, allowing authorized participants to exchange shares directly for TAO.
- Important operational note: the filing specifies that staking of TAO is not currently permitted; the trust may only stake in the future if and when regulatory and tax conditions allow. No timeline was provided.
Bigger picture
- Grayscale’s Bittensor filing signals a shift beyond the 2025 ETF narrative that largely focused on Bitcoin, Ethereum, and Ripple. The move aims to formalize “decentralized AI” as an investable category in traditional finance.
- The GTAO push is part of a broader expansion: Grayscale is also updating and refining product efforts around other networks, including Avalanche (AVAX) and Sui (SUI).
- The SEC’s approval timeline remains uncertain; a decision in mid-2026 is possible but not guaranteed. If greenlit, the ETF would be another institutional bridge into a specialized crypto sector.
Disclaimer: This article is informational and not investment advice. Cryptocurrency trading carries high risk; readers should do their own research before making investment decisions.
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