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Grayscale files an S-1 to launch the first U.S. Bittensor ETP, signaling rising institutional interest in AI crypto.
Author: Tanishq Bodh
December 30, 2025 – Grayscale Investments has filed an S-1 registration statement with the U.S. Securities and Exchange Commission, seeking approval to convert its Grayscale Bittensor Trust into an exchange-traded product. Submitted on December 30, 2025, the filing could pave the way for the first U.S.-listed ETP offering direct exposure to TAO, the native token of the Bittensor network.
The trust, which currently trades on OTCQX under the ticker GTAO, would be listed on NYSE Arca if approved. As a result, investors could gain regulated access to decentralized AI infrastructure through a familiar exchange-traded wrapper. The move highlights growing institutional interest in artificial intelligence-linked crypto assets as the AI narrative accelerates.
While TAO did not see an immediate price surge following the filing, market sentiment across AI-focused crypto assets turned constructive. Traders and analysts described the move as a legitimacy milestone for decentralized AI protocols. Meanwhile, TAO continues to trade within a wide historical range, having fluctuated between roughly $189 and $709 during 2025.
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The filing also arrives shortly after Bittensor’s first halving event on December 14, which cut token issuance rewards in half. That supply adjustment, combined with the prospect of an exchange-listed product, has reinforced longer-term interest among institutional allocators monitoring the AI crypto sector.
Mark ױ τ🐆
@veritas_91
@Grayscale @SECGov $TAO is heading to a $100,000 by 2030. Keep fading. I’ll keep buying cheap.
Today we filed the initial S-1 for Grayscale Bittensor Trust (ticker: $GTAO) with the @SECGov 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: https://t.co/2qg6AgqYOg
05:10 PM·Dec 30, 2025
SpartA
@SpartA1ah1
@Grayscale @SECGov $TAO Bittensor A new way for exit liquidity. Is this the second attempt to hold the price above $200? Just so you know, the halving didn't help with price action.
Today we filed the initial S-1 for Grayscale Bittensor Trust (ticker: $GTAO) with the @SECGov 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: https://t.co/2qg6AgqYOg
04:29 PM·Dec 30, 2025
Despite optimism, the S-1 outlines several material risks. TAO remains a volatile asset, and the filing warns that sharp price swings could lead to significant investor losses. In addition, the Bittensor network faces technical risks, including potential consensus attacks and network disruptions.
Regulatory uncertainty also looms. The SEC could scrutinize whether TAO qualifies as a security, which may delay or derail approval. Furthermore, competition from other AI-focused blockchain projects could limit adoption, even if an ETP launches successfully.
Bittensor operates as a decentralized protocol that incentivizes open-source machine learning development. Contributors earn TAO tokens by providing models or computational resources, creating a peer-to-peer alternative to centralized AI platforms. With a fixed maximum supply of 21 million tokens, TAO mirrors Bitcoin-style scarcity mechanics.
According to the filing, the Grayscale Bittensor Trust holds TAO as its sole asset, stored in cold custody with Coinbase Custody Trust Company and BitGo Trust Company. The trust tracks TAO’s price using the CoinDesk TAO Reference Rate and charges a 2.5% annual sponsor fee. Importantly, it does not engage in staking or leverage.
If approved, the product would rename to the Grayscale Bittensor Trust ETF and allow creations and redemptions in large share baskets. Although approval timelines remain uncertain, the filing positions Grayscale at the forefront of merging decentralized AI with regulated financial markets.
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