TAO Gains as Grayscale Files First U.S. Bittensor ETF for AI Token Access

Grayscale filed for the first U.S.-listed ETP offering exposure to Bittensor's TAO token according to Coindesk.

The proposed Grayscale Bittensor Trust (GTAO) would trade on NYSE Arca if approved as reported.

Bittensor operates a decentralized AI network rewarding machine learning contributors with TAO according to MEXC.

This follows TAO's December 2025 halving event that cut token issuance by 50% according to MEXC.

Grayscale has taken a major step toward launching the first U.S.-listed exchange-traded product for Bittensor's TAO token. The digital asset manager filed an S-1 registration statement with the SEC for its Grayscale Bittensor Trust. This initiative aims to provide regulated access to tokens powering decentralized artificial intelligence networks. TAO gained attention following the filing as institutional demand accelerates.

What Is Grayscale's Proposed Bittensor ETP?

Grayscale seeks to convert its existing Bittensor Trust into a spot ETF trading under ticker GTAO on NYSE Arca as reported. The product would offer exposure to TAO without requiring investors to manage tokens directly. Coinbase would serve as custodian using in-kind creation mechanisms to minimize premiums according to AInvest. This filing follows Grayscale's October Form 10 submission to make the trust an SEC Reporting Company according to MEXC. Approval would mark a significant expansion beyond Bitcoin and Ether ETPs.

Regulated access could lower barriers for traditional investors eyeing AI tokens. The structure mirrors Grayscale's successful conversions of other crypto trusts into ETFs according to StockTwits. Still, the SEC must evaluate this novel asset class carefully.

How Does Bittensor's TAO Token Function?

TAO powers Bittensor's open-source protocol connecting machine learning models in a competitive marketplace according to MEXC. The network uses crypto-economic incentives to coordinate AI development globally. Contributors providing models or computing resources earn TAO rewards while stakers help secure the ecosystem according to Coindesk. This creates a decentralized alternative to centralized AI development pipelines.

Tokenomics shifted significantly after December 2025's halving event. Daily issuance dropped from 26% to 13% annually, creating artificial scarcity according to AInvest. Network upgrades like dTAO also improved subnet liquidity for miners according to MEXC. TAO's $2.3 billion market cap reflects its role as the economic backbone for decentralized machine learning according to Coindesk.

What Does This Mean for Institutional Crypto Adoption?

The filing signals growing institutional interest in crypto assets beyond Bitcoin and Ethereum according to StockTwits. Grayscale aims to position decentralized AI as a mainstream investment category through regulated vehicles according to MEXC. This aligns with broader industry efforts to launch institutional-grade altcoin products as regulatory clarity improves according to AInvest. Multiple firms including Bitwise have shown interest in AI token offerings according to AInvest.

Expanding access could accelerate capital flows into AI-focused crypto networks. Grayscale's move comes amid predictions for increased crypto ETP launches during 2026 according to MEXC. That said, regulatory hurdles persist for novel tokenized AI infrastructure according to AInvest. Success hinges partly on SEC approval timelines and market reception.