Grayscale Files SEC Form 10, Lighting Path for AI Crypto's Institutional Adoption

Grayscale's filing of SEC Form 10 for its Bittensor Trust (TAO) has ignited bullish momentum in the AI-focused crypto sector, marking a pivotal step toward institutional adoption of decentralized machine-learning assets. The move, announced October 12, signals the trust's voluntary transition to an SEC-reporting entity under Section 12(g) of the Securities Exchange Act of 1934, requiring quarterly and annual disclosures akin to public companies. This regulatory alignment aims to enhance transparency, reduce private placement holding periods from 12 to 6 months, and pave the way for potential over-the-counter (OTC) market trading.

The Grayscale Bittensor Trust, launched in June 2024, holds $11.4 million in assets under management and charges a 2.5% expense ratio. By tracking the TAO token-Bittensor's native asset-the trust offers investors exposure to a decentralized AI network where developers earn rewards for contributing to machine-learning models. Bittensor's subnets, or modular AI workloads, operate on blockchain infrastructure, bypassing centralized servers while incentivizing participation through TAO. The network's total value locked has surged 30% annually, with over 50,000 daily transactions and a growing wallet count, reflecting robust ecosystem growth.

Market analysts view the SEC filing as a strategic catalyst. "Form 10 filings are a signal that Grayscale wants to legitimize the asset in the eyes of regulators and institutions," said ChainInsights' Marcus Hill. The move mirrors Grayscale's prior playbook for Bitcoin and Ethereum trusts, which eventually led to spot ETF approvals. With AI tokens like $FET and $AGIX surging over 150% year-to-date, $TAO's regulatory progress positions it to capitalize on the AI investing boom.

The announcement triggered immediate market reactions. TAO's price climbed 20% post-filing, with trading volume spiking as investors anticipated improved liquidity. Technical indicators, including an RSI range of 58–62 and rising moving averages, suggest continued bullish momentum. Shortened holding periods could further accelerate adoption, particularly among institutional players seeking regulated access to AI infrastructure without the operational costs of traditional data centers.

Grayscale's CEO, Michael Sonnenshein, emphasized the filing's alignment with broader market trends: "This reflects our commitment to increasing accessibility and regulatory alignment for institutional investors". The trust's path to becoming an exchange-traded product (ETP) remains uncertain, but the SEC's prior approval of Bitcoin and Ethereum ETPs in 2024 provides a regulatory roadmap. If effective, the trust's public quotation could attract a new wave of capital to Bittensor, amplifying its role as a bridge between decentralized AI and traditional finance.

Source: [1] Grayscale's $TAO Move Shakes Crypto: Bittensor Trust Form 10 ... (https://www.cryptoninjas.net/news/grayscales-tao-move-shakes-crypto-bittensor-trust-form-10-filing/)

[2] Grayscale Bittensor Trust (https://www.grayscale.com/funds/grayscale-bittensor-trust)

[3] Grayscale Files SEC Form 10 for Bittensor Trust (https://coinlineup.com/grayscale-sec-filing-bittensor-trust-etp/)