Grayscale Seeks Spot ETF for Bittensor AI Token TAO

Grayscale Investments has filed a preliminary registration statement with the U.S. Securities and Exchange Commission to convert its Bittensor Trust into a spot exchange-traded fund. The proposed product would trade under the ticker GTAO and offer regulated exposure to TAO, the native token of the decentralized artificial intelligence network.

According to CrowdfundInsider, Grayscale Investments has filed a preliminary registration statement with the SEC to launch an exchange-traded product focused on Bittensor. The proposed trust, to trade under GTAO, would provide regulated exposure to TAO. The S-1 filing on Dec. 30,…

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The S-1 filing, submitted on December 30, 2025, represents the next step for a trust that began trading on OTC Markets in December 2024. If approved, GTAO would become the first U.S.-listed spot ETF dedicated to TAO, opening doors for retail and institutional investors seeking AI-crypto exposure.

Chairman Barry Silbert stated the company is “pioneering access” to the decentralized AI sector. The filing arrives amid Grayscale’s broader corporate expansion, including a confidential IPO registration submitted to the SEC in July 2025.

Bittensor’s Role in Decentralized AI

Bittensor operates as an open-source protocol for advancing AI development through blockchain-based incentives. Founded in 2019, the network rewards participants who contribute computational resources, data, or machine-learning models to its shared intelligence ecosystem.

The TAO token functions as the network’s core utility asset, enabling staking, governance, and compensation for contributions. Bittensor connects more than 50 subnets across various AI applications, including chatbots, translations, and image generation.

TAO currently holds a market capitalization between $2.3 billion and $3 billion. The token reached highs near $520 earlier in 2025 during peak AI enthusiasm before correcting sharply to around $220.

Bittensor is emerging as the Internet of AI, an open ecosystem where collective intelligence can grow in a way that is transparent, decentralized, and fair.

said Rayhaneh Sharif-Askary, Head of Product and Research at Grayscale.

The network recently completed its first halving event, reducing the rate of new TAO token creation. Similar to Bitcoin, Bittensor has a maximum supply of 21 million tokens and halves emissions approximately every four years.

Regulatory Landscape and Market Outlook

The ETF filing arrives during a notably favorable regulatory environment for cryptocurrency products. The Trump administration has adopted a pro-crypto stance, rescinding previous guidance that urged “extreme care” regarding digital assets in retirement accounts.

Bitcoin reached a record above $122,000 in July 2025 ahead of landmark crypto legislation in Washington. Multiple crypto companies, including Gemini and Bullish, have filed for IPOs alongside Grayscale’s own listing plans.

JUST IN: 🇺🇸 Grayscale files confidentially for US IPO with SEC. pic.twitter.com/jz23aPeSjL

— Bitcoin Magazine (@BitcoinMagazine) July 14, 2025

However, SEC approval for the Bittensor ETF remains uncertain. The agency has maintained scrutiny over crypto ETFs, citing concerns about market manipulation, custody arrangements, and investor protection.

Jacob Steeves, Co-Founder of Bittensor, welcomed the broader market access.

It allows more investors to take part in the emergence of decentralized AI and supports the accelerating momentum we’re seeing across the ecosystem.

he said.

Following the filing news, TAO’s price stabilized around $220, erasing earlier intraday losses. Some analysts forecast the token could reach $300 in the coming months if institutional interest grows, though stronger fundamentals would be needed for sustained gains.

Competitors, including VanEck and BlackRock, may pursue similar AI-themed crypto products, intensifying competition in this emerging category. The approval process could take months and may require revisions before any final SEC decision.