Grayscale Files S-1 to Convert Bittensor Trust into U.S. Spot TAO ETF

Grayscale Investments filed a Form S-1 with the U.S. Securities and Exchange Commission on December 30, 2025, seeking to convert its Grayscale Bittensor Trust into a spot exchange-traded product to provide direct U.S. exposure to Bittensor’s native token TAO (proposed ticker: GTAO). The trust, launched as a private vehicle in 2024 and recently publicly quoted, aims to list on NYSE Arca. The filing follows Bittensor’s first halving on December 14, which cut daily TAO issuance from 7,200 to 3,600 tokens and seeks to place TAO directly in the ETF — including tokens earned via staking inside the trust. Coinbase is named prime broker, with Coinbase Custody Trust Company as primary custodian and BitGo as secondary custodian; Bank of New York Mellon is transfer agent. NYSE Arca has approved in-kind creations and redemptions, allowing authorized participants to exchange TAO for ETF shares. As of December 29, 2025, TAO traded near $220 with a market cap above $2.1 billion. If approved, the ETF would provide a regulated vehicle for U.S. institutional and retail investors to gain spot exposure to TAO, likely increasing liquidity and institutional participation. The filing signals rising institutional interest in AI-linked blockchain assets but may draw heightened SEC scrutiny because of Bittensor’s decentralized AI infrastructure; approval remains subject to regulatory review.