Grayscale Investments is making waves in the cryptocurrency world by filing an initial S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to convert its existing Bittensor Trust (GTAO) into a fully listed exchange-traded product (ETP). If approved, this regulatory milestone will offer U.S. investors mainstream exposure to TAO, the native cryptocurrency of the Bittensor protocol.
Understanding the TAO and Bittensor Protocol
Bittensor is a decentralized marketplace designed for machine intelligence, where TAO acts as its native token. The protocol offers a unique model for incentivizing artificial intelligence (AI) contributions within its ecosystem. In December 2025, the Bittensor Trust made the jump to public quotation on the OTCQX market to meet SEC reporting standards, paving the way for this proposed ETP launch.
Grayscale’s Strategic Expansion
Grayscale, already known for its diverse portfolio of cryptocurrency trusts—including ones for Bitcoin and Ethereum—is expanding its offerings by targeting TAO. This effort aligns with its vision to provide regulated and secure cryptocurrency investment products. Custody for the Bittensor Trust is managed through industry leaders such as Coinbase Custody and BitGo, ensuring compliance and security, with The Bank of New York Mellon acting as the transfer agent.
TAO and Market Trends
As of Tuesday, TAO experienced a 1% intraday surge, reaching $220 with a market cap of $2.32 billion. Over recent weeks, its price has displayed a consolidating trend between $212 and $235, after a sharp decline of nearly 60% in the last two months. This consolidation phase has heightened market anticipation as investors observe key support and resistance levels.
Technical indicators like RSI suggest bearish sentiment, hinting at potential price drops. If TAO falls below $212, the token could experience a further decline of 32%, reaching $142. However, any breakout above $235 could push its price to $260, signaling a recovery for this altcoin.
Potential Impact of Grayscale’s Proposed ETP
The approval of this ETP by the SEC would place TAO on the NYSE Arca exchange, marking the first regulated U.S.-focused product for TAO. This represents a significant opportunity to boost mainstream adoption of decentralized protocols like Bittensor. Investors interested in pioneering decentralized AI marketplaces should closely monitor this development.
Enhance Your Crypto Portfolio
While you explore TAO’s investment potential, consider bolstering your portfolio with Coinbase-managed assets. Coinbase offers secure cryptocurrency custody solutions, enabling you to diversify your investments in a reliable environment.
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