Grayscale files an SEC S-1 to convert its Bittensor Trust into a spot ETF, offering regulated exposure to TAO investors.
Grayscale Investments has taken a significant step toward expanding regulated crypto access in U.S. markets. On December 30, the firm filed a preliminary registration statement with the Securities and Exchange Commission. As a result, the filing aims to turn the Grayscale Bittensor Trust into an exchange-traded fund in the form of a spot exchange-traded fund.
Grayscale Seeks First U.S.-Listed TAO Exchange-Traded Product
The proposed product would be traded under the ticker symbol GTAO on NYSE Arca if approved. Therefore, investors would have access to Bittensor’s native token, the TAO, via a regulated investment vehicle. According to CrowdfundInsider, the S-1 filing is the first attempt to have a TAO-focused exchange-traded product listed in the United States.
Grayscale is a subsidiary of Digital Currency Group, and it manages over $30 billion of crypto assets. Previously, the Grayscale Bitcoin Trust became a spot Bitcoin ETF in the beginning of 2024. Consequently, that approval enhanced Grayscale’s role in regulated digital asset products.
Related Reading: ETFs News: Grayscale Files for First U.S. Bittensor (TAO) Spot ETF| Live Bitcoin News
This filing also shows growing confidence in decentralized artificial intelligence amongst crypto markets. At the heart of the proposal is Bittensor, which is the open-source protocol for collaborative machine learning development. Instead of centralised data ownership, the network rewards contributors who provide computation, data ,or models.
The filing of December 30, 2025, details the mechanics of operations of the proposed ETF in detail. Authorized participants were able to create or redeem shares with in-kind TAO transfers or cash orders. Meanwhile, Coinbase would serve as prime broker and custodian and Bank of New York Mellon as transfer agent.
Market reaction followed the announcement soon after it became public. TAO prices reached over $220 before settling around $236.64 as of January 2nd, 2026. Therefore, the filing was seen as a positive catalyst by traders in spite of volatility in the crypto market as a whole.
Bittensor ETF Filing Signals Institutional AI Confidence
Founded in 2019, Bittensor employs the use of crypto incentives to create a shared intelligence ecosystem. The TAO token provides staking, governance participation and contributor compensation. However, currently Bittensor has a market cap that is between $2.3 billion and $3 billion.
Earlier in 2025, TAO reached highs of almost $520 during a period of high enthusiasm for artificial intelligence. However, prices later corrected sharply as speculative movement weakened. Still, analysts say regulated access is possible because it can offer incentives for institutional participation that is steadier over time.
Grayscale Chairman Barry Silbert called the initiative groundbreaking to access decentralized artificial intelligence markets. He added that blockchain-based artificial intelligence networks have the potential to revolutionize the world’s models of innovation. As a result, products such as GTAO could bring legitimacy to decentralized AI investments.
Some analysts predict that SEC approval will see TAO prices rise to $300 over the next few months. However, they warn that long-term stability is reliant on the continued adoption of the network and fundamental growth. Moreover, regulatory oversight surrounding crypto ETFs is still intense.
This filing also comes after Bittensor’s first halving event in the middle of December 2025. The halving caused a reduction in daily TAO issuance, which served to reduce the supply conditions all throughout the network.
Source: https://www.livebitcoinnews.com/grayscale-moves-to-convert-bittensor-trust-into-spot-etf/
