Bitcoin News Today: Grayscale Launches Public Bittensor Trust as Halving Looms

Grayscale's Bittensor Trust, the first publicly quoted investment product in the U.S. designed to provide exposure to the TAO token, began trading on OTCQX under the ticker symbol GTAO on December 11, 2025. The trust, which had been private since its launch in August 2024, is now accessible to a broader investor base through public quotation. This move marks a key milestone in Grayscale's strategy to transition its private digital asset products to the public market.

The Bittensor network, which underlies the TAO token, is set to undergo its first halving event on December 14, 2025. The halving will reduce token emissions by 50%, tightening the supply of TAO and potentially increasing its scarcity, similar to Bitcoin's supply mechanism. The network caps TAO supply at 21 million tokens, with emissions halved approximately every four years.

Grayscale, a subsidiary of Digital Currency Group and one of the largest digital asset-focused investment platforms, has a history of launching investment vehicles for major cryptocurrencies like Bitcoin and Ethereum. The firm also recently converted several of its altcoin trusts into exchange-traded products, including the Grayscale LINK fund. The Bittensor Trust will now file regular reports with the SEC, enhancing transparency for investors.

Strategic Market Move and Regulatory Milestone

The launch of the Grayscale Bittensor Trust on OTCQX represents a strategic step in Grayscale's broader effort to democratize access to digital assets. By transitioning the trust from a private to a public vehicle, Grayscale is enabling a wider range of accredited investors to participate in the growth of the Bittensor ecosystem. This shift aligns with the company's long-term vision of bridging the gap between traditional finance and digital assets.

The trust will now file financial statements and reports with the SEC under Section 12(g) of the Exchange Act. This reporting requirement brings additional oversight and transparency to the product, which is important for institutional investors and market participants seeking clarity on the fund's performance and structure. The move also reduces the statutory holding period for shares acquired through private placements, from 12 months to 6 months, under Rule 144 of the Securities Act.

Bittensor's AI-Focused Ecosystem and Scarcity Mechanism

Bittensor is a decentralized AI network that allows participants to contribute computing power in exchange for TAO tokens. The network supports a growing number of specialized subnets that focus on various AI applications, such as chatbots, image generation, and translation. These subnets operate like independent startups within the Bittensor ecosystem, offering targeted AI services while incentivizing network participants.

The upcoming halving event is expected to have a significant impact on the economics of the Bittensor network. By cutting daily TAO issuance in half, the event will reduce the rate at which new tokens are created and distributed to network participants. This scarcity mechanism is designed to increase the value of TAO over time, assuming continued demand for the network's services. The halving is hard-coded into the protocol and will trigger automatically once 10.5 million TAO have been mined.

Market Reactions and Investment Outlook

The combination of the Grayscale Bittensor Trust's public launch and the approaching halving has generated strong investor interest. TAO's price has been trading around $300, with momentum building as the market anticipates the scarcity-driven supply adjustments. Technical indicators suggest a potential breakout above the $330 resistance level, which could pave the way for further gains.

Analysts highlight the unique positioning of Bittensor in the AI and blockchain space, noting its alignment with Bitcoin's scarcity model. Rayhaneh Sharif-Askary, head of product and research at Grayscale, emphasized that Bittensor is evolving into the "Internet of AI," an open and decentralized ecosystem where collective intelligence can be shared in a transparent manner. Jacob Steeves, co-founder of Bittensor, added that the wider market access will allow more investors to participate in the decentralized AI revolution.

Risks and Considerations for Investors

Despite the optimism surrounding the Grayscale Bittensor Trust and the Bittensor network, investors should be aware of the risks involved. The trust is still not an exchange-traded product (ETP) and does not operate a redemption program, which could limit its liquidity compared to traditional ETFs. Additionally, the Bittensor protocol is relatively new, and its long-term success depends on the adoption and utility of its AI subnets. Market volatility remains a key concern for investors. TAO has historically experienced significant price swings, and the halving event could either stabilize or exacerbate this volatility depending on how the market reacts to the reduced supply. Furthermore, while the trust offers a more accessible way to invest in TAO, it is still limited to accredited investors for now.