.png){kind=logo}
Grayscale Investments filed a Form S-1 with the US Securities and Exchange Commission on December 30 to list its Bittensor Trust on NYSE Arca under the ticker GTAO. The filing seeks to convert an existing over-the-counter product into an exchange-traded fund offering regulated exposure to TAO, the native token of the Bittensor network. As of December 31, the trust held digital assets valued at $7.97 million and reported 1.88 million shares outstanding on the OTCQX market.
The product operates as a passive vehicle holding TAO directly while tracking its market price after fees. Grayscale structured the trust as a Delaware statutory trust formed in April 2024.
Shares trade at a total expense ratio of 2.5% and represent 0.0192 TAO per share.
Grayscale aims to transition the product to a national exchange while keeping its existing asset structure intact. The proposed listing would allow investors to access TAO exposure through a regulated exchange framework. The filing positions the trust for broader distribution under US securities rules.
The trust issues shares in 10,000-unit baskets through authorized participants. Participants create or redeem shares using either in-kind TAO deposits or cash orders executed by liquidity providers. This structure mirrors standard ETF creation and redemption processes used in traditional markets.
For in-kind orders, broker-dealers deposit TAO directly into custody at BitGo or withdraw TAO during redemptions. These transactions move tokens without converting them to cash. The approach reduces reliance on spot market execution for certain flows.
Cash orders follow a separate process using Coinbase as the prime broker. Liquidity providers execute purchases through segregated accounts on behalf of participants. Some cash orders apply variable fees, while others pass price risk to participants until final settlement.
The trust calculates net asset value each day at 4:00 p.m. Eastern. Pricing relies on the CoinDesk TAO CCIXber Reference Rate. If unavailable, the trust shifts to the Coin Metrics Real-Time Rate or Coinbase spot pricing.
Bittensor limits TAO supply to 21 million tokens. The network reduced daily emissions by 50% during a halving event in December 2025. Following the change, the token’s inflation rate fell from 25.6% to 12.8%.
The network rewards contributors who support decentralized AI development. TAO functions as both an incentive and a settlement asset within the ecosystem. These mechanics define the economic model that underpins the trust’s holdings.
The filing outlines governance risks tied to validator concentration within the Bittensor network.
The LOL-subnet, as one of the speculative subnets, is among the list of features that the network structure outlined in the registration statement still consists of.
The ETF application coincides with the gradual extension of regulations to cover major markets. Europe is enforcing regulation through MiCAR, while the US is pushing new laws such as the GENIUS Act. These developments form the regulatory backdrop referenced in the filing.
As regulated access to AI-linked digital assets grows, the GTAO filing adds another instrument to this category. Will institutional capital treat AI-native tokens like TAO as a distinct asset class within regulated markets?
Also Read: DOGE Faces Critical Price Test While Grayscale ETF Debut Shows Limited Interest
Grayscale filed an SEC Form S-1 to convert its Bittensor Trust into a NYSE Arca ETF offering regulated exposure to the TAO token. The filing details custody pricing, creation mechanics, and supply dynamics as institutions seek compliant access to AI-linked digital assets.
