Grayscale Files for Bittensor TAO Spot ETF After Halving Event

Grayscale Bittensor ETF filing on December 30, 2025, seeks SEC approval to convert its Bittensor Trust into a spot ETF tracking TAO token. This move follows Bittensors halving, reducing emissions to 3,600 TAO daily, positioning decentralized AI for institutional investment via NYSE Arca.

• Grayscale Bittensor ETF targets TAO for spot exposure post-halving.
• Bittensor halving cuts daily TAO emissions, enhancing scarcity with 21 million cap.
• TAO price surged to $220.77, up 1.05% in 24 hours per CoinMarketCap data.

What is the Grayscale Bittensor ETF？

Grayscale Bittensor ETF is a proposed spot exchange-traded fund from Grayscale that would convert its existing Bittensor Trust into a product providing direct price exposure to Bittensors TAO token. Filed via S-1 registration with the U.S. Securities and Exchange Commission on December 30, 2025, it aims to list on NYSE Arca. Approval would enable institutional investors to access decentralized AI assets through traditional markets without direct token custody.

How does Bittensor halving impact the Grayscale Bittensor ETF filing？

Bittensor‘s first halving in mid-December 2025 reduced daily TAO emissions from previous levels to 3,600 tokens, enforcing a hard cap of 21 million TAO total supply. This supply reduction aims to mitigate inflation and incentivize long-term holding, creating a potential supply shock. Grayscale’s timely filing capitalizes on this scarcity narrative, as TAO price recovered to $220.77, reflecting trader anticipation of institutional inflows. According to on-chain data, post-halving emission cuts historically correlate with price stabilization in similar networks, per blockchain analytics from sources like Glassnode.

Frequently Asked QuestionsCan institutional investors stake TAO through the Grayscale Bittensor ETF？

No, the Grayscale Bittensor ETF filing specifies that staking TAO is not permitted at launch. The trust may explore staking only if future regulatory and tax conditions are met, though no specific timeline is outlined in the S-1 document filed with the SEC.

What happens if the SEC approves the Grayscale Bittensor ETF？

SEC approval of the Grayscale Bittensor ETF would allow authorized participants to create or redeem shares using in-kind TAO transfers or cash mechanisms. Coinbase serves as prime broker, with Coinbase Custody and BitGo as custodians, streamlining institutional access to Bittensors decentralized AI ecosystem via U.S.-listed shares.

Key Takeaways

• Bittensor halving drives scarcity: Daily emissions now at 3,600 TAO, supporting long-term value amid 21 million cap.
• Strategic filing timing: Grayscales S-1 post-halving positions decentralized AI for Wall Street demand surge.
• Institutional readiness: Custodians like Coinbase and BitGo ensure secure, compliant TAO exposure without staking initially.