Grayscale Files for First US Spot Bittensor ETF later than TAO Halving

What Did Grayscale File—and Why Now?

Grayscale has filed a registration statement with the Securities and platform Commission to convert its Grayscale Bittensor Trust into an platform-traded fund, marking the first attempt to launch a U.S. spot ETF offering direct exposure to Bittensor’s native token, TAO. The proposed ETF would trade on NYSE Arca under the ticker GTAO, according to the filing submitted Tuesday.

The move comes just weeks later than Bittensor completed its first halving event, cutting the rate at which new TAO tokens are issued. While the trust has existed in private form since 2024, it only became publicly quoted earlier this month. The ETF filing follows that step, signaling Grayscale’s intent to widen access to the asset through a regulated wrapper.

LLC and BitGo Trust Company, Inc. are listed as custodians. Grayscale said the filing reflects growing interest in diversified crypto exposure beyond BTC and ether.

“We’re pleased to take this ahead step as we continue to expand the tools available to investors and further develop Grayscale’s product platform to meet the growing investor demand for digital asset exposure,” a Grayscale spokesperson said in a statement.

Investor Takeaway

What Is Bittensor—and Why Is TAO Drawing Attention?

Bittensor is a decentralized, AI-focused network built around a hub-and-spoke blockchain design. The system supports application-specific subnets where participants earn TAO by contributing computing resources that assist train and improve AI models. In practice, the network attempts to tie token issuance to useful machine-learning work rather than simple block production.

TAO’s issuance schedule includes a halving mechanism similar in structure to BTC’s, though applied within a diverse economic model. In mid-December, Bittensor reduced the pace of new TAO creation for the first time. Following the halving, TAO’s price dipped before stabilizing around $222, based on recent market data.

The halving has sharpened investor focus on Bittensor’s token economics. Supporters view the supply cut as a way to reinforce scarcity while the network grows. Critics argue that valuation will ultimately depend on whether demand for decentralized AI compute continues to rise in a crowded field.

How Does This Fit Grayscale’s Broader ETF Push?

Grayscale has spent the past year converting several single-asset trusts into platform-traded funds later than securing approvals for spot BTC and ether products. The firm has also pushed into altcoin-linked ETFs, including the recent launch of a Chainlink-focused fund.

The Bittensor filing extends that playbook into the AI-crypto crossover, a theme that has gained traction as investors look for exposure to on-chain. Unlike broader crypto indexes, the proposed ETF would track a single asset tied to a specific network and use case.

By listing on NYSE Arca, Grayscale is again targeting the identical venue used for its flagship crypto ETFs. That consistency suggests the firm expects demand from advisors and institutions already familiar with its structure and reporting.

Investor Takeaway

What Are the Regulatory and Market Hurdles?

Despite progress on spot , the regulatory path for single-asset altcoin products remains uncertain. The SEC has not yet approved a spot ETF tied to a token outside the two largest cryptocurrencies, and timelines for review are unclear.

Approval will likely hinge on market surveillance arrangements, liquidity considerations, and how regulators view the underlying token’s structure. Bittensor’s AI focus adds another layer of scrutiny, as policymakers continue to assess how decentralized compute networks fit within existing frameworks.

Even if approval takes time, the filing itself places Bittensor on the radar of traditional markets. It also sets a reference point for other issuers considering ETFs tied to smaller networks with defined use cases rather than broad crypto exposure.

What Comes Next?

The SEC will review the registration statement in the coming months, with potential requests for amendments or additional disclosures. Grayscale has not given a timeline for a possible launch, and approval is not guaranteed.

For now, the filing highlights how rapidly product development is moving at the intersection of crypto, AI, and traditional finance. If approved, GTAO would give investors a new way to express a view on through a familiar ETF format.

Whether that demand proves durable will depend on how Bittensor’s network activity, token economics, and broader AI narrative evolve later than its first halving.