Emre Yumlu 
Grayscale, one of the most established names in digital asset investment products, has taken a notable step toward expanding its crypto offering. The firm has submitted an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) for the Grayscale Bittensor Trust, signaling its intention to convert the product into a publicly traded exchange-traded product. If approved, this move would result in the first TAO-based ETP in the United States.
From $GTAO Trust to a Listed ETF
At present, the Grayscale Bittensor Trust trades on the OTCQX market under the ticker GTAO. Following regulatory approval and a successful listing on NYSE Arca, the product is expected to be rebranded as the Grayscale Bittensor Trust ETF. This transition would allow investors to gain exposure to TAO through a regulated exchange, without needing to directly purchase or store the underlying digital asset.
The ETF structure is designed to track the value of TAO held by the trust. Share pricing will reflect the market value of the underlying assets, adjusted for operating expenses and other liabilities. While the ETF does not represent direct ownership of TAO, it offers a streamlined and cost-efficient vehicle for investors seeking price exposure.
Clear Restrictions on Staking Activity
One of the key points outlined in the filing concerns staking. Under the current regulatory framework, the trust is not permitted to stake its TAO holdings or generate additional yield through staking-related mechanisms. Whether this limitation could change in the future remains uncertain and would depend on regulatory developments.
Institutional-Grade Infrastructure Behind the Product
The operational framework of the trust includes several well-known financial and crypto-native institutions. Coinbase serves as the prime broker and plays a role in custody services, while Bank of New York Mellon is responsible for administrative and transfer-related functions. Shares are created and redeemed exclusively through authorized participants and only in predefined basket sizes, ensuring controlled liquidity and market efficiency.
What Is Bittensor (TAO)?
Bittensor is a decentralized blockchain protocol focused on the development and coordination of artificial intelligence. Unlike traditional networks that connect hardware or servers, Bittensor connects machine learning models, forming a global, peer-to-peer marketplace for AI intelligence.
TAO is the native asset of the Bittensor network and is used to reward contributors who support the network’s security and functionality. Similar to Bitcoin, TAO has a fixed maximum supply of 21 million tokens and operates with a halving mechanism that gradually reduces issuance over time.
Grayscale’s move toward a TAO-based ETF highlights the growing institutional interest in projects operating at the intersection of artificial intelligence and blockchain technology. The outcome of this application will be closely monitored, as it may set an important precedent for future AI-focused crypto investment products in regulated markets.
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