Grayscale Files for First U.S. Bittensor Spot ETF Under GTAO Ticker

Grayscale Investments filed a preliminary registration statement with the U.S. Securities and Exchange Commission on December 30, 2025, to convert its Bittensor Trust into a spot ETF according to reports. The proposed product, which would trade under the ticker GTAO, aims to provide investors with regulated exposure to Bittensor's native token, TAO as research shows. This move represents the first attempt to list a U.S.-traded exchange-traded product focused on TAO according to analysis.

The filing details the structure of the proposed ETF, including a hybrid creation mechanism that allows authorized participants to create or redeem shares using in-kind TAO transfers or cash orders according to the filing. Coinbase serves as the prime broker and custodian for the trust, while Bank of New York Mellon acts as the transfer agent as per the filing. The trust currently trades on the OTCQX market with a total expense ratio of 2.5% according to data.

TAO's price rose to over $220 following the announcement, stabilizing around $236.64 as of January 2, 2026 according to market data. The token has experienced volatility in 2025, reaching highs of nearly $520 before correcting sharply as reported.

Why Did This Happen?

Grayscale's move follows a broader trend of institutional interest in decentralized AI platforms according to analysts. Bittensor, an open-source protocol for collaborative machine learning, uses cryptocurrency incentives to reward contributors who provide computational resources or data as described. TAO functions as the token that enables staking, governance, and compensation for contributors according to the protocol.

Grayscale has previously launched successful crypto products, including the Grayscale Bitcoin Trust, which became a spot Bitcoin ETF in early 2024 according to filings. The firm's experience in launching regulated crypto products gives it a competitive edge in the emerging market for AI-focused digital assets according to market analysis.

How Did Markets React?

The market response to the filing was positive, with TAO seeing a price increase following the announcement according to trading data. Institutional investors have shown interest in regulated crypto products that offer exposure to decentralized AI networks as reported.

Despite the positive reaction, TAO's price remains volatile, with analysts forecasting potential movement toward $300 in the coming months if institutional demand grows according to forecasts. However, long-term price stability will depend on fundamental developments in Bittensor's ecosystem according to industry experts.

What Are Analysts Watching Next?

The approval timeline for the GTAO ETF remains uncertain, despite a pro-crypto administration and the SEC's recent introduction of generic listing standards according to regulatory updates. Regulators are likely to scrutinize aspects such as market manipulation, custody arrangements, and investor protection as noted.

The proposed ETF faces competition from other firms seeking to launch Bittensor-related products. For example, Bitwise filed for 11 crypto strategy ETFs on December 30, including a dedicated TAO product according to filings. The market for AI-themed crypto products is expected to grow in 2026, but liquidity and investor confidence remain challenges as projected.

Grayscale's GTAO ETF could attract billions in assets if approved, similar to the success of the Bitcoin ETF according to market analysis. However, analysts caution that many of these products may struggle to maintain demand beyond 2027 as reported.

Grayscale's filing is also significant given the broader regulatory environment. The SEC's October 2025 introduction of generic listing standards has accelerated the development of institutional crypto products according to industry reports. This shift has made it easier for firms to launch new ETFs without case-by-case approval as explained.