TAO Gains as Grayscale Files First US Bittensor ETF

• Grayscale filed an S-1 for the first US exchange-traded product for Bittensor's TAO token according to reports.
• Bittensor's first halving reduced daily TAO emissions by 50% to 3,600 tokens as data shows.
• Institutional interest grows with multiple regulated TAO investment vehicles emerging according to market analysis.
• The network generates nearly $480k daily revenue from over 120 active subnets as reported.

Bittensor (TAO) gained momentum following Grayscale's landmark regulatory filing for a dedicated exchange-traded product. The decentralized AI token rose 10% after Grayscale unveiled its Grayscale Bittensor Trust (GTAO), providing institutional exposure through traditional securities according to Bitget. Recent developments signal growing recognition of blockchain-based AI networks as TAO undergoes structural shifts. This momentum coincides with Bittensor's first halving event that fundamentally altered its tokenomics as noted in the blog.

How Could Grayscale's ETF Filing Reshape TAO Access?

Grayscale's S-1 registration with the SEC marks a critical step toward converting its existing Bittensor Trust into a spot exchange-traded product according to cryptocurrency news. This would give US investors their first regulated pathway to TAO exposure through mainstream brokerage accounts. The trust currently holds TAO tokens with a 2.5% expense ratio and a $7.96 net asset value per share as detailed. Approval would place TAO alongside Bitcoin and Ethereum as crypto assets with dedicated ETFs. That positions Bittensor favorably for institutional capital inflows should regulators greenlight the structure.

Meanwhile, Deutsche Digital Assets launched a European staked TAO ETP showing cross-border institutional demand as reported. Grayscale also filed paperwork to make its trust an SEC reporting company first, shortening private placement holding periods. Multiple firms now compete to provide institutional-grade TAO access as investor interest grows according to industry analysis. Still, the SEC must approve Grayscale's application before shares become publicly tradable according to regulatory updates.

Why Did Bittensor's Halving Boost Investor Sentiment?

Bittensor executed its first halving in December 2025, slashing daily token emissions by 50% to 3,600 TAO according to market reports. This introduced Bitcoin-like scarcity mechanics into Bittensor's economic model. Reduced new supply coincided with increased staking activity as participants sought rewards from the fixed emission pool as observed. Network upgrades like dTAO enhanced subnet liquidity for miners too.

Halving events typically create artificial scarcity that supports prices if demand remains constant. That dynamic appears in play as daily emissions dropped from 7,200 tokens pre-halving according to analysis. The supply shock contributed significantly to TAO's positive price action alongside institutional developments as reported. Reduced inflation creates favorable conditions for value appreciation if network adoption continues.

What Makes Bittensor Attractive to Institutional Investors?

Bittensor's core proposition as a decentralized machine intelligence network resonates with institutions seeking AI exposure according to industry reports. Its protocol rewards distributed machine learning contributions through TAO token incentives. Nearly $480,000 in daily on-chain revenue flows from over 120 active subnets, demonstrating organic network utility as noted. This economic framework aligns participant incentives through staking pools and fee structures.

Institutions increasingly view decentralized AI as an alternative to centralized service providers according to analysis. Grayscale highlighted Bittensor's unique positioning when announcing its trust, noting the network's novel approach to incentivizing AI development as detailed. The staking mechanism further reduces circulating supply as participants lock tokens to earn rewards. That structural demand combined with tightening emissions creates compelling tokenomics for long-term investors according to market commentary.