Grayscale Files for Bittensor ETF as TAO Eyes First U.S. ETP

Crypto asset manager Grayscale Investments has recently submitted a filing to the U.S. Securities and Exchange Commission (SEC) with plans to launch a Bittensor exchange-traded product (ETP). The proposed trust, expected to trade under the ticker GTAO, would offer regulated exposure to Bittensor’s native token, TAO. If approved, the product would allow investors to gain TAO exposure without directly holding the cryptocurrency.

Grayscale Files For Bittensor ETF

The S-1 filing, submitted on Dec. 30, 2025, represents the first step toward converting the existing Grayscale Bittensor Trust into a spot ETP. If approved, GTAO would become the first U.S.-listed product offering direct exposure to TAO through public markets.

Grayscale Chairman Barry Silbert said the move reflects the firm’s effort to “pioneer access” to emerging sectors. Despite growing optimism, approval is not guaranteed.

However, a large number of crypto ETFs are likely to hit the market this year in 2026. The SEC continues to scrutinize crypto-linked ETPs over concerns related to custody, market integrity, and investor protection. While the current U.S. administration has adopted a more crypto-friendly stance, the review process could still take months.

Founded in 2019, Bittensor operates as an open-source network designed to advance artificial intelligence through decentralized participation. The AI platform rewards contributors with native TAO tokens against providing compute power, data, or AI models. At the same time, the TAO token also supports staking and governance.

With a market capitalization estimated between $2.3 billion and $3 billion, TAO has gained prominence amid rising interest in AI-related crypto projects. Supporters view Bittensor as a decentralized alternative to centralized AI platforms operated by large technology firms.

Bittensor ETF News Drives TAO Price Movement

The news about the Bittensor ETF filing has helped stabilize the TAO price at $220 after a sharp correction over the past month. Analysts suggest that regulatory approval could drive renewed interest in the token. However, they still caution that any rally may depend on sustained adoption and network fundamentals.

TAO previously reached highs near $520 earlier in 2025, during the peak of AI enthusiasm, before undergoing a sharp correction. But with today’s broader crypto market recovery, the Bittensor price has also surged 9%.

As of press time, TAO is trading at $243 with its market cap soaring past $2.56 billion. Additionally, the daily trading volume has surged by 100% to exceed $117 million. This indicates that bullish sentiment is once again gaining momentum among traders.

Crypto analyst Captain Faibik said that the Bittensor price move confirms a bullish technical breakout on the eight-hour chart. In a recent market update, the analyst noted that TAO has broken out of a falling wedge pattern. This is an indication of a major trend reversal to the upside.

Based on this setup, Faibik suggested the token could rally up to 60% if bullish momentum continues.

Crypto market analyst Quinten said Bittensor’s native token, TAO, has returned to the lower end of its recent trading range, setting the stage for a potential rebound.

In a recent commentary, Quinten argued that a move back toward the $720 level would be a logical next step if momentum improves. He pointed to several supportive factors, including the completion of TAO’s first halving.

Furthermore, the recent buzz around artificial intelligence (AI) could also support the TAO price upside. The analyst highlighted ongoing development activity within the Bittensor ecosystem. He noted that multiple projects continue to build on the network.

Based on these dynamics, Quinten said the outlook for TAO and the broader Bittensor ecosystem appears positive in 2026.