Key Highlights
- Grayscale filed an S-1 with the SEC to convert its Bittensor Trust into a spot ETF trading under the ticker GTAO on NYSE Arca.
- The proposed fund would provide regulated access to TAO, the native asset of the Bittensor decentralized AI network.
- The filing outlines physical custody through Coinbase and BitGo, while token staking is currently restricted.
Asset manager Grayscale Investments filed a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) on Tuesday, seeking to convert its Bittensor Trust into a spot exchange-traded fund. The firm plans to list the product on the NYSE Arca exchange under the ticker symbol GTAO.
According to the official filing, the proposed ETF is designed to give investors regulated access to TAO, the native token of the Bittensor network. This is in response to growing demand for diverse digital asset exposure.
This registration marks a shift for the Grayscale Bittensor Trust from a private placement to a potential national exchange-traded product. The trust would hold TAO and value its shares based on the CoinDesk TAO CCIXber Reference Rate.
To handle the physical assets, Grayscale has chosen Coinbase Custody Trust Company and BitGo Trust Company as custodians. The fund is set up to allow both cash and in-kind creation and redemption processes. This will enable authorized participants to manage shares in blocks of 10,000.
The trust, the custodian, the sponsor, or anyone associated with the trust is currently prohibited from staking any held TAO assets. Under existing guidelines, the trust cannot participate in staking protocols to generate yield, income, or additional digital assets.
The filing specifies that no guarantee staking or other income-generating activities will be permitted in the future, keeping the trust’s holdings passive for the time being.
Rapid expansion into altcoin-specific funds
Grayscale has been expanding its suite of exchange-traded products, shifting its focus toward altcoin-specific funds to meet growing investor demand for diversified crypto exposure. In early December 2025, the firm launched the Grayscale Chainlink Trust ETF (GLNK) as the first zero-fee Chainlink ETP in the U.S. and filed to convert its $150 million Zcash Trust into a spot ETF.
Building on this momentum, Grayscale recently submitted an S-1 registration for the Grayscale Sui Trust (GSUI), aiming to provide regulated access to the Sui blockchain’s native token. These moves signal a pivot toward infrastructure and utility-based assets as the market moves beyond Bitcoin and Ethereum.
Evolution of the Bittensor trust
The Grayscale Bittensor Trust launched in August 2024 as a private placement for accredited investors only. In December 2025, the trust shifted to a publicly quoted model on the OTCQX market. This change reduced holding periods for early investors and improved transparency by making the trust an SEC-reporting entity.
Commenting on the transition, Rayhaneh Sharif-Askary, Head of Product & Research at Grayscale, said, “With Grayscale Bittensor Trust now available on public markets, investors can access what we believe is a fundamental shift in how intelligence is created and shared.” She added, “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.”
The Bittensor network and AI marketplace
The Bittensor network is a decentralized protocol for machine learning. It serves as a marketplace for AI, rewarding participants with TAO tokens for providing computational power or high-quality AI models.
The network ranks contributions through a competitive system that supporters view as a decentralized alternative to centralized AI models dominated by major tech companies. The timing of this ETF filing comes right after the Bittensor network’s first halving event, which reduces token emissions in a way similar to Bitcoin’s monetary policy.
If approved, this conversion would incorporate TAO into the traditional brokerage system and could introduce a new wave of institutional investment to the decentralized AI field. However, the filing also recognizes risks, such as high market volatility and the unclear regulatory status of many crypto tokens.
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