Grayscale Files for Bittensor Spot ETF Under GTAO
Grayscale Investments filed a Form S-1 registration assertion with the SEC on December 30 for the Grayscale Bittensor Trust ETF, looking for to transition its current over-the-counter product to a NYSE Arca itemizing underneath the ticker GTAO.
The submitting positions Grayscale to supply regulated publicity to TAO, the native token of Bittensor’s decentralized AI market, by means of a passive funding automobile holding digital belongings valued at $7.97 million as of December 31.
The belief presently trades on OTCQX with 1.88 million shares excellent and prices a 2.5% complete expense ratio whereas sustaining 0.0192 TAO per share.
Grayscale structured the product as a Delaware statutory belief fashioned in April 2024, with shares issued in 10,000-unit baskets completely by means of approved contributors who create or redeem holdings utilizing both in-kind TAO deposits or money orders executed by liquidity suppliers.
Hybrid Creation Mechanism Targets Institutional Access
The submitting detailed two distinct order varieties enabling approved contributors to facilitate share creation and redemption.
In-kind orders enable broker-dealers to deposit TAO instantly into BitGo’s custody vault or withdraw belongings throughout redemptions.
In distinction, money orders make the most of Coinbase as a main dealer to execute purchases on behalf of contributors by means of segregated accounts.
Cash transactions make use of both variable-fee constructions, during which liquidity suppliers take in worth differentials, or precise execution orders that place worth threat on approved contributors between trade-date NAV and remaining settlement values.
The belief calculates internet asset worth each day at 4:00 PM Eastern utilizing the CoinDesk TAO CCIXber Reference Rate, with cascading backup protocols that default to the Coin Metrics Real-Time Rate or Coinbase spot pricing if the first index turns into unavailable.
BNY Mellon serves as administrator and switch agent, whereas Coinbase Custody Trust Company handles digital asset safekeeping alongside BitGo, although the belief presently prohibits staking actions pending IRS steering on grantor belief tax therapy.
Grayscale dedicated to irrevocably abandoning rights to tokens from community forks or airdrops to protect the construction’s tax classification, probably forfeiting future worth from protocol upgrades.
European ETP Wave Signals Broader Altcoin ETF Competition
The Grayscale submitting arrives as Deutsche Digital Assets and Safello launched the Safello Bittensor Staked TAO ETP on SIX Swiss Exchange in October, providing 1.49% charge publicity to staking rewards by means of the Kaiko Safello Staked Bittensor Index.
That product generated rapid institutional curiosity, as TAO rallied 42% in October to $427.59, although the token has since declined to present ranges amid broader crypto market year-end outflows.
Bitwise information 11 crypto technique ETFs with SEC concentrating on DeFi, Layer-2, and privateness protocols for NYSE Arca buying and selling.#Bitwise #ETFhttps://t.co/4lfgX8jyOM
— Cryptonews.com (@cryptonews) December 31, 2025
Bitwise simultaneously filed for eleven strategy-based crypto ETFs on December 30, together with a devoted TAO product alongside funds monitoring AAVE, UNI, NEAR, SUI, STRK, ZEC, ENA, and different protocols.
The wave of functions adopted the SEC’s October 2025 introduction of generic listing standards, which eradicated case-by-case approval necessities and accelerated institutional product launches throughout previously restricted altcoin markets.
Speaking with Cryptonews, Ray Youssef, CEO of NoOnes, famous that altcoin ETF launches are “colliding with tight liquidity, low investor confidence and pronounced market underperformance,” however argued new listings “create a gentle influx channel that may function a liquidity buffer.”
Ending 2025, XRP ETFs posted six consecutive days of inflows exceeding $420 million, whereas Solana merchandise attracted $2.29 million on December 31 at the same time as Bitcoin and Ethereum ETFs recorded combined outflows of $420 million that session.
Despite rapid market headwinds, Grayscale’s submitting positions the agency to seize institutional demand as soon as macro situations stabilize.
The belief’s internet asset worth declined 51.6% year-over-year to $4.24 per share as of December 31, buying and selling at a 124% premium to NAV at $9.50 market worth.
Notably, the submitting disclosed dangers, together with TAO’s historic volatility starting from $188.82 to $709.06 yearly, potential SEC classification that would drive liquidation, and irreversible custody losses from compromised non-public keys regardless of multi-signature chilly storage protocols throughout geographically distributed amenities.
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