Grayscale Investments filed an S-1 on Dec. 30, 2025 to convert its Grayscale Bittensor Trust into a spot exchange-traded fund that would trade under the ticker GTAO. The move seeks to give institutional and retail investors regulated access to Bittensor’s native token TAO.
Grayscale’s S-1 frames GTAO as a regulated conduit to TAO, intended for a listing on NYSE Arca if the SEC approves the conversion. The filing emphasizes direct, spot exposure to the token rather than derivative or synthetic arrangements.
‘The S-1 seeks to provide investors with direct, regulated exposure to Bittensor’s native token, TAO,’ the filing states, underscoring the product’s design to simplify institutional access to decentralized-AI infrastructure.
These filings form part of a broader, multi-asset strategy that followed Grayscale’s successful legal challenge in Aug. 2023 and the subsequent conversion of GBTC to a spot Bitcoin ETF in Jan. 2024. That regulatory precedent lowered some barriers for altcoin ETF applications and appears to have encouraged a more assertive product cadence from the firm.
Filing details and Grayscale’s altcoin strategy
The SEC is reviewing the GTAO filing and will likely focus on token-specific factors such as Bittensor’s tokenomics, network security, governance structure and the intersection of AI-related considerations with securities law. Grayscale’s experience with prior ETF conversions reduces some procedural uncertainty, but the agency’s review remains rigorous for novel asset classes.
From a market perspective, approval would provide a cleared institutional on‑ramp to a niche—from a tradability and custody standpoint, ETFs lower operational friction for treasuries and allocators. However, the trust’s current AUM ($10.8M) is modest, and TAO carries idiosyncratic risks: nascent technology adoption, governance dynamics, and competition from centralized AI platforms. Those factors preserve substantial volatility even if an ETF improves liquidity and legitimacy.
Analysts cited in the filing and coverage note that ETF accessibility could materially increase institutional interest in decentralized-AI tokens. The filing’s backers argue GTAO would open a familiar vehicle for allocators seeking exposure at the intersection of blockchain and AI, though commentators have also flagged speculative price projections tied to approval scenarios.
