Grayscale Files Bittensor (TAO) ETF Application with SEC

Grayscale Investments has filed an initial S-1 registration statement with the U.S. Securities and Exchange Commission for a proposed exchange-traded product (ETP) offering exposure to Bittensor’s native token, TAO according to reports. The move comes as the firm seeks to expand its suite of regulated crypto products to include the first U.S.-listed ETP for the TAO token as research shows. This filing marks a major step toward institutional adoption of decentralized artificial intelligence (AI) assets according to data.

The proposed ETF will trade under the ticker symbol GTAO on the NYSE Arca exchange according to the filing. The product would allow investors direct access to TAO without the complexities of managing private keys or custody as noted in the filing. Grayscale aims to leverage its existing infrastructure and regulatory expertise to bring institutional-grade exposure to a growing segment of the crypto market as per the filing.

Bittensor operates as a decentralized AI network, where participants contribute machine intelligence and receive TAO tokens in return as described in the report. This structure aligns with broader trends in blockchain innovation, particularly in decentralized computing and AI development as research indicates. TAO’s capped supply of 21 million tokens also draws comparisons to Bitcoin’s scarcity model according to analysis.

Why Did This Happen?

The filing follows the first halving event of the TAO token in mid-December 2025, which reduced the daily issuance rate by half according to reports. This event, combined with TAO’s $3 billion market cap as of late 2025, has drawn attention from institutional investors as data shows. Grayscale’s decision reflects growing demand for regulated access to AI-focused crypto assets according to market analysis.

The company previously filed a Form 10 for the Grayscale Bittensor Trust in October 2025, paving the way for SEC reporting status as reported. This filing is part of a broader trend of crypto firms seeking ETP approval as U.S. regulators show increased openness to spot crypto products according to industry sources.

How Did Markets React?

TAO’s price has shown significant volatility in 2025, reaching a high of $560 in January before retreating to around $220 by April according to market data. Despite this, the token has maintained a market cap of approximately $2.3 billion as of late 2025. Grayscale’s filing has not yet triggered a significant price movement in TAO, with the token trading at $220 as of early 2026 according to current data.

The market response highlights the cautious optimism of both retail and institutional investors according to analysts. The token’s performance has been influenced by macroeconomic factors and broader crypto market sentiment, but the filing has introduced a new potential catalyst according to market commentary.

What Are Analysts Watching Next?

Analysts are closely monitoring the SEC’s review process for the proposed ETP as reported. The agency is expected to assess custody arrangements, liquidity, and market integrity before making a decision according to regulatory sources. If approved, the ETP could drive increased liquidity and price discovery for TAO as analysts expect. This could also attract new investors who are more comfortable using traditional financial products to gain exposure to crypto according to market projections.

Grayscale has also taken steps to improve accessibility for investors, including a planned transition from private offerings to public quotation as stated in the filing. The firm’s experience with other crypto trusts provides confidence in its ability to navigate regulatory hurdles according to industry analysis.

The broader implications of this filing extend beyond the TAO token as research shows. As more institutional investors seek exposure to AI-focused blockchains, the regulatory environment will play a critical role in shaping adoption according to market experts. Grayscale’s initiative could serve as a model for future ETPs in this space according to analysts.