Bittensor Gains as Grayscale and Bitwise File for TAO ETFs

• Grayscale filed to convert its GTAO trust into the first U.S. Bittensor ETF on NYSE Arca according to reports.
• Bitwise included a TAO Strategy ETF in its 11 crypto ETF filings targeting blockchain protocols.
• Both filings aim to provide regulated institutional access to Bittensor's decentralized AI network as research shows.
• TAO's recent halving event reduced token issuance amid growing network activity.

Bittensor's TAO token is poised for broader institutional adoption as asset managers Grayscale and Bitwise filed for exchange-traded funds targeting the AI-focused cryptocurrency. Both filings submitted to the SEC in late December 2025 would provide traditional market exposure to Bittensor's decentralized machine learning network according to filings. The moves follow TAO's recent halving event and reflect growing interest in blockchain-based AI infrastructure as data indicates. These developments could significantly increase TAO's market visibility and liquidity.

What Are the New TAO ETF Filings by Grayscale and Bitwise?

Grayscale filed to convert its existing Grayscale Bittensor Trust (GTAO) into an ETF seeking NYSE Arca listing according to reports. This proposed spot ETF would directly hold TAO tokens with potential staking rewards, utilizing Coinbase as prime broker and BitGo as custodian according to filings. The structure mirrors Grayscale's approach with its Bitcoin and Ethereum products and aims to shift from OTC trading to exchange accessibility as industry reports show.

Meanwhile, Bitwise filed 11 strategy-based crypto ETFs including a TAO Strategy Fund on December 30 according to filings. Its hybrid model allocates up to 60% to direct token holdings and at least 40% to European ETPs tracking TAO performance as analysis shows. This filing leveraged the SEC's new generic crypto ETF standards that simplify approval processes across multiple tokens simultaneously as industry experts note.

How Could These ETFs Impact Bittensor's Market Adoption?

These filings could dramatically expand TAO's investor base beyond crypto-native participants according to market analysis. Institutions would access Bittensor's $2.3 billion AI ecosystem through traditional brokerage accounts without handling crypto wallets as reports indicate. The reduced technical barriers might attract capital from investors seeking exposure to decentralized AI growth as analysts suggest.

Bittensor's recent halving event makes the timing strategically significant as market data shows. The mid-December halving cut daily token issuance by 50%, potentially creating scarcity alongside expanding network use cases. Increased institutional access could amplify these supply dynamics and drive liquidity into the ecosystem according to industry reports.

What Risks Remain for Investors in Bittensor ETFs?

Uncertainty persists around token classification as securities according to filings. Regulatory shifts could force fund dissolution if TAO faces legal challenges as experts warn. Hybrid structures like Bitwise's also introduce counterparty risks from European ETP issuers and valuation gaps across time zones as analysis shows.

Market volatility remains a concern with TAO's history of price swings. Bittensor's governance model and liquidity concentration add operational complexities according to market reports. Investors should monitor SEC feedback throughout the approval process for both filings as industry sources note.