Grayscale Investments filed a Form S-1 with the U.S. Securities and Exchange Commission on Dec. 30, 2025 to convert its Grayscale Bittensor Trust into a spot ETF that would trade under the ticker GTAO on NYSE Arca. The filing formalizes Grayscale’s intent to offer U.S. investors regulated exposure to TAO, the native token of the Bittensor decentralized AI network.
The submission lays out the proposed fund structure, redemption and creation mechanics and operational counterparties, and follows Grayscale’s earlier Form 10 steps to register the trust as an SEC reporting company. The S-1 positions the conversion as a structured transition from an OTC-traded trust into an exchange-listed ETF format.
Proposed ETF Structure and Market Mechanics
The S-1 describes the ETF as a Delaware statutory trust and proposes share issuance in 10,000-unit blocks to facilitate creation and redemption by authorized participants. The filing also details a hybrid mechanism for aligning market price with net asset value.
Grayscale files another cryptocurrency ETF, conversion from existing fund
Grayscale Bittensor Trust (TAO)
Ticker: [ $GTAO ]
Fees: [ 2.50% ]
Effective date: tbaGrayscale Bittensor Trust:https://t.co/9vWmrMQtYN
Bittensor:https://t.co/WTpLEAdldo
Grayscale ETFs:… pic.twitter.com/amUTmH1wA0
— ETF Hearsay by Henry Jim (@ETFhearsay) December 30, 2025
Ticker: GTAO; proposed exchange: NYSE Arca. Creation/redemption: in-kind TAO transfers or cash orders. Prime broker and custodian named: Coinbase as prime broker, BitGo Trust Company as custodian. Current trust status: the Grayscale Bittensor Trust trades on OTCQX with a 2.5% expense ratio. These terms outline how the product would operate, who would service it, and where it is intended to trade.
Those operational choices are intended to reduce the premiums and discounts that previously affected some crypto trusts, and to ease institutional participation if the SEC grants approval. The proposal emphasizes tighter price tracking and a more institution-friendly pathway if regulators allow the listing.
Bittensor is an open protocol that rewards AI contributions with TAO. The token follows a supply schedule capped at 21 million tokens and a Bitcoin-style halving cadence; the network’s first halving occurred in mid-December 2025, reducing issuance and tightening supply growth. The protocol’s incentive design and supply constraints frame TAO as both a utility token and a scarcity-driven asset.
Regulatory Backdrop and Investor Focus
Grayscale Research highlighted the halving as a potential catalyst, noting on Dec. 3, 2025 that “the combination of reduced TAO supply growth from the halving and increased TAO demand could serve as a positive catalyst.” The commentary links the halving event to a demand-supply dynamic that could influence market sentiment.
The network’s market capitalization was estimated at roughly $3 billion in the firm’s analysis, while token price had stabilized near $220 amid a broader market pullback. The analysis presents Bittensor as a multi-billion-dollar network with price action described as steady during a wider downturn.
The S-1 came after the SEC introduced generic listing standards in Oct. 2025 that accelerated altcoin ETF filings. The filing is positioned as part of a faster-moving regulatory environment for non-Bitcoin crypto ETFs.
Grayscale is pursuing a broader altcoin ETF strategy beyond Bitcoin, having filed or amended documents for multiple tokens. The Bittensor filing signals the firm’s continued push into assets linked to emerging infrastructure and application layers, particularly those tied to decentralized AI services. The move reinforces a strategic expansion toward token-based exposure themes beyond legacy crypto benchmarks.
Investors are now turning their attention to potential SEC approval and an eventual NYSE Arca listing, which will serve as the market test for institutional demand for regulated TAO exposure. If approved, the ETF would provide a regulated channel for capital to flow into the Bittensor ecosystem; if declined or delayed, it would reinforce the regulatory frictions that still shape altcoin product launches. The outcome ultimately hinges on the SEC decision and whether institutions respond to TAO exposure in an ETF wrapper.