Bitcoin News Today: Grayscale's TAO Trust Bridges Regulated Finance and Decentralized AI

Grayscale Investments, the world's largest digital asset manager, has filed a Form 10 with the U.S. Securities and Exchange Commission (SEC) for its Bittensor Trust, a move signaling growing institutional confidence in AI-driven crypto assets and potentially paving the way for public trading of the TAO token . The filing, announced on October 12, 2025, marks the first step toward transforming the trust into an SEC-reporting entity under Section 12(g) of the Securities Exchange Act of 1934, requiring quarterly, annual, and current financial disclosures akin to public companies .

The filing could reduce the private placement holding period for TAO from 12 to six months, enhancing liquidity for early investors and enabling public quotation on OTC Markets . This regulatory progression mirrors Grayscale's historical playbook with Bitcoin and Ethereum trusts, which eventually led to spot ETF approvals. "Form 10 filings are a signal that Grayscale wants to legitimize the asset in the eyes of regulators and institutions," said Marcus Hill, senior analyst at ChainInsights . The timing aligns with a surge in AI-related tokens like $FET, $AGIX, and $RNDR, which have gained over 150% year-to-date, drawing speculative and institutional attention .

Bittensor's decentralized AI network, which rewards participants with TAO for training and validating machine-learning models, has seen total value locked (TVL) rise 30% annually, with over 50,000 daily transactions and a spike in wallet creation since September . Institutional investors are attracted to the trust's structure, which allows them to gain exposure to AI infrastructure without managing data-center costs or custody risks . The network's subnet-based architecture-autonomous modules running AI workloads via blockchain-positions TAO as a bridge between regulated finance and decentralized machine learning.

Market reactions have been swift. TAO's price surged 20% on Coinbase following the filing, with trading volume spiking and bullish sentiment dominating social media platforms . Technical indicators suggest accumulation, with RSI readings of 58–62 and moving averages pointing to a medium-term uptrend . Analysts warn of potential volatility once the SEC acknowledges the filing on EDGAR, but the broader narrative remains positive. "Every time Grayscale moves toward compliance, liquidity follows," noted market analyst Crypto Rover .

The filing also sets the stage for TAO's first halving event, scheduled for December 2025, which will cut daily token emissions from 7,200 to 3,600, reducing inflation from 25% to 12.5% annually . This scarcity mechanism, akin to Bitcoin's halving, could further bolster TAO's value proposition. However, subnets reliant on token emissions for revenue may face challenges, necessitating alternative income streams like API access or data sales .

Grayscale's move reflects broader trends in AI-crypto integration. As institutional investors seek regulated exposure to decentralized AI infrastructure, TAO's compliance-driven trajectory could catalyze broader adoption. While the trust has not yet applied for exchange-traded product (ETP) status, the filing lays the groundwork for future conversions, potentially mirroring the success of Grayscale's Bitcoin and Ethereum trusts.

[1] Bittensor Belief Type 10 Submitting - Chain Rumors (https://chainrumors.com/index.php/2025/10/12/bittensor-trust-form-10-filing/)

[2] Grayscale Files Form 10 for Bittensor Trust to Boost Transparency (https://web.ourcryptotalk.com/news/grayscale-files-form-10-for-bittensor-trust-to-boost-transparency)

[3] Grayscale's $TAO Move Shakes Crypto: Bittensor Trust Form 10 ... (https://www.cryptoninjas.net/news/grayscales-tao-move-shakes-crypto-bittensor-trust-form-10-filing/)

[4] Grayscale Files SEC Form 10 for Bittensor Trust (https://coinlineup.com/grayscale-sec-filing-bittensor-trust-etp/)