Bittensor's TAO Gains on Grayscale's First US ETP Filing

• Grayscale filed for the first U.S. ETP tracking Bittensor's TAO token, seeking SEC approval for regulated institutional access. According to the report
• TAO recently underwent a halving event, reducing daily token issuance by 50% to 3,600 TAO.
• Bittensor's network now hosts over 120 active subnets generating nearly $480,000 in daily on-chain revenue.
• Institutional interest grows as Deutsche Digital Assets launched a European staked TAO ETP. According to industry reports

Bittensor's TAO token is gaining attention after Grayscale filed for the first U.S. exchange-traded product tied to the decentralized AI network. The move could provide regulated exposure to TAO for institutional investors, reflecting confidence in blockchain-based AI infrastructure. This development follows TAO's recent halving event and expanding network activity. The filing aligns with broader institutional interest in decentralized AI assets.

What Does Grayscale's Bittensor ETP Filing Mean for Institutional Adoption?

Grayscale's S-1 filing for a TAO-based ETP marks a milestone for decentralized AI tokens. The Grayscale Bittensor Trust (GTAO) would hold TAO tokens directly and trade on U.S. markets if approved by the SEC. This provides a regulated pathway for institutional capital previously limited to over-the-counter products. The move signals asset managers' strategy to package emerging crypto narratives into accessible offerings. Approval remains uncertain but reflects growing institutional validation. According to the report

The proposed ETP could enhance TAO's liquidity and market depth significantly. Grayscale's filing follows Deutsche Digital Assets' European staked TAO ETP, indicating cross-border institutional demand. Barry Silbert highlighted decentralized AI's rapid evolution as key to this initiative. According to industry analysis Bittensor's crypto-economic model rewards machine learning contributions, attracting institutional interest. That said, regulatory hurdles remain the primary obstacle to launch. The outcome could set precedents for AI token accessibility.

How Could TAO's Halving and Subnet Growth Impact Token Value?

TAO's first halving in late 2025 reduced daily token issuance by 50% to 3,600. This event mirrors Bitcoin's scarcity model and may create structural supply pressure. Meanwhile, Bittensor's subnet count surged past 120, indicating robust developer activity. Network expansion increases utility demand for TAO as staking collateral. These combined factors could drive token appreciation if adoption continues. According to network data on-chain revenue metrics show substantial economic activity across subnets. Approximately $480,000 worth of TAO flows daily into subnet rewards pools. High-earning subnets generate over $4 million in annual recurring revenue, with top performers earning 270+ TAO daily. The dTAO upgrade enables market-driven resource allocation through staking pools. This mechanism reduces circulating supply while aligning incentives. Still, token volatility persists as the network matures amid competition.