Bittensor's AI Blockchain Gains Institutional Momentum via Europe's First Staked TAO ETP

The Bittensor (TAO) token surged 20% on October 31, climbing from $414 to $490, following the launch of Europe's first staked TAO exchange-traded product (ETP) by Safello and Deutsche Digital Assets. The Safello Bittensor Staked TAO ETP (ticker: STAO), listed on the SIX Swiss Exchange, offers institutional-grade exposure to TAO, the native token of the decentralized AI network Bittensor, while allowing investors to earn staking rewards, according to a Yahoo Finance report. The product, which charges a 1.49% management fee, is fully backed by TAO tokens held in cold storage by a regulated custodian, according to ETF Express.

The ETP's debut marks a pivotal moment for Bittensor, which has seen its market capitalization rise to $4.35 billion, placing it among the top 30 cryptocurrencies, according to CryptoNews. The rally coincided with renewed institutional interest in AI-driven blockchain projects, as global crypto markets continue to diversify with structured products like ETPs. Similar offerings for Solana, Litecoin, and Hedera are also gaining traction, reflecting a broader trend of regulated access to digital assets, according to Coinotag.

Bittensor's architecture, which merges decentralized machine learning with blockchain incentives, has attracted developers seeking alternatives to centralized AI platforms. The network operates through specialized subnets, where participants earn TAO tokens for contributing to AI model development and validation. Industry observers compare its potential to Bitcoin's disruption of finance, with Bittensor aiming to decentralize AI infrastructure.

The Safello ETP builds on this momentum by automating staking rewards and compounding them into the fund's net asset value (NAV), enhancing long-term returns for investors, as ETF Express noted. Deutsche Digital Assets, which partnered with Safello to launch the product, emphasized its compliance with regulatory standards and its role in bridging traditional finance and crypto innovation.

Despite the ETP-driven rally, TAO has faced recent volatility. CoinMarketCap data shows a 4% dip in the past 24 hours, though the token's 42% surge in October has bolstered its fully diluted valuation to $8.97 billion, according to CryptoNews. Analysts attribute the upward momentum to anticipation of Bittensor's upcoming halving event, scheduled for December 10–11, which will cut mining rewards by 50%, per the Yahoo Finance report.

Technical indicators suggest further upside potential. TAO's price has formed higher lows since mid-October, with the Relative Strength Index (RSI) near 65.7 and a bullish MACD crossover signaling continued strength, according to the Yahoo Finance coverage. Immediate resistance lies at $540, a level not seen since May 2025.

The ETP's launch underscores the growing institutional embrace of crypto assets, particularly in Europe. By offering a regulated, transparent vehicle for staking, Safello and Deutsche Digital Assets are addressing barriers to adoption for risk-averse investors, ETF Express observed. The product also highlights the convergence of AI and blockchain, with Bittensor's cold storage and staking mechanisms aligning with compliance priorities.

Industry leaders have praised the initiative. Safello CEO Emelie Moritz called it a "pivotal step" in democratizing access to decentralized AI, while Deutsche Digital Assets CEO Maximilian Lautenschläger noted the collaboration's role in scaling innovative crypto strategies in a TradingView report.

As the ETP ecosystem expands, Bittensor's position at the intersection of AI and blockchain could attract further capital inflows, particularly as regulators refine frameworks for digital assets. For now, the TAO surge reflects both market confidence in its technology and the maturing appeal of structured crypto products.