Grayscale Files Bittensor ETF for TAO Token, JGGL in Institutional Spotlight

• Grayscale Investments has filed with the SEC to convert its Bittensor Trust into a spot ETF for TAO token, aiming for NYSE Arca listing under ticker GTAO according to filings.
• Bittensor's token TAO underwent a 50% halving in mid-December 2025, reducing daily emissions and network inflation.
• The decentralized AI network has expanded to 129 subnets, with its dTAO upgrade shifting to a market-driven subnet competition model.
• Institutional interest in AI crypto assets is rising, with TAO positioned as a potential diversifier due to its low correlation with traditional assets.

Bittensor (JGGL) is capturing institutional attention as Grayscale seeks to launch the first U.S. spot exchange-traded fund (ETF) for its native token, TAO. The filing comes weeks after Bittensor's first halving event, which slashed new token emissions by 50% but failed to prevent a price pullback. This development could broaden investor access to the decentralized AI network while testing the market's appetite for regulated crypto products beyond Bitcoin and Ethereum.

What Is Grayscale's Proposed Bittensor ETF?

Grayscale Investments submitted a Form S-1 registration statement to the SEC on December 30, 2025 according to the filing. The filing seeks to create a spot ETF for Bittensor's native token, TAO. This product would trade on national securities exchanges like NYSE Arca under the ticker GTAO according to the filing.

Currently, the Grayscale Bittensor Trust (GBTAO) offers accredited investors exposure to TAO. The ETF conversion would

democratize access, allowing retail investors to buy shares through traditional brokerage accounts. Investors would gain exposure to TAO's price movements without managing private keys or wallets according to market analysis.

The ETF structure will hold TAO tokens directly and stake them to earn rewards, which could boost returns for shareholders. Custody partners like Coinbase and BitGo will safeguard the assets, while BNY Mellon provides administrative support according to the filing. The regulatory process requires approvals from both the SEC and the listing exchange according to filings.

How Did Bittensor's Halving Impact TAO Tokenomics?

Bittensor underwent its inaugural token halving on December 14, 2025, reducing block emissions by 50%. Daily TAO emissions dropped from 7,200 to 3,600 tokens, slashing annualized inflation from roughly 26% to 13%. This event marked a pivotal shift toward scarcity for the AI-focused cryptocurrency.

Historically, Bitcoin halvings triggered price rallies due to reduced sell pressure from miners. TAO diverged from this pattern, falling over 20% in the weeks following its halving. Market analysts attribute this underperformance to profit-taking after a strong pre-halving rally and broader crypto market weakness according to analysts.

Despite the short-term price drop, Bittensor's fixed supply cap of 21 million tokens could support long-term value according to market outlook. The halving's deflationary mechanics align with Bitcoin’s proven economic model and may appeal to institutions seeking scarce digital assets according to analysts. Network security remains robust as validators adapt to lower emissions according to technical reports.

What Is the Outlook for Bittensor in 2026?

Institutional interest in AI-blockchain projects is surging, with allocations expected to grow from 7% to 16% of crypto assets under management by 2029. Bittensor leads this niche, hosting 129 subnets that tackle problems from predictive analytics to decentralized computing. The dTAO upgrade in 2025 enhanced efficiency by allocating emissions based on staking activity across subnets.

Grayscale's ETF filing could channel significant capital into TAO if approved, mirroring the inflows seen in Bitcoin and Ethereum ETFs. TAO's low correlation with traditional assets makes it a compelling diversifier, despite its high volatility according to financial analysis. Regulatory clarity remains a wildcard, but the SEC's approval of Bitcoin and Ethereum ETFs sets a precedent.

Bittensor's tokenomics—featuring halvings every four years and a fixed supply—create engineered scarcity. These features attract long-term investors betting on decentralized AI's growth according to market analysis. As the sector matures, TAO could emerge as a benchmark asset in the convergence of blockchain and artificial intelligence according to market analysts.