Grayscale Investments has filed a Form S-1 with the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Bittensor Trust into a spot exchange-traded fund (ETF). If approved, the product would list on the NYSE Arca under the ticker GTAO, becoming the first ETP in the United States to offer direct exposure to Bittensor’s native token, TAO.
Custody and Structure
The filing outlines a multi-custodian structure designed to satisfy institutional security standards. Coinbase will serve as the Prime Broker and Custodian, while BitGo has been named as an additional custodian. The Bank of New York Mellon (BNY Mellon) is listed as the transfer agent.
This move mirrors the firm’s strategy for its Solana and Avalanche trusts, where existing private placement products are converted into public reporting companies (via Form 10) before seeking full ETF status (via Form S-1).
Market Reaction
TAO traded flat following the disclosure, hovering between $219 and $222. The token saw a brief wick to $222 immediately after the filing hit the wires but failed to sustain momentum, settling near $220 (-0.3% 24h). Volume remained muted at approximately $60 million across major exchanges, suggesting the news was largely priced in by the Trust’s prior OTCQX listing.
Institutional Infrastructure
The involvement of BitGo as a custodian signals growing infrastructure maturity for the Decentralized AI (DePIN) sector. BitGo already provides custody for Deutsche Digital Assets’ Bittensor ETP in Switzerland, indicating that institutional-grade rails for TAO are operational across multiple jurisdictions. Grayscale’s filing places the onus on the SEC to determine if the asset class is sufficiently mature for U.S. retail markets.
