Grayscale Seeks Approval for First Bittensor (TAO) ETF with SEC

Grayscale Investments, a prominent crypto ETF issuer, has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) to convert its Bittensor Trust into an Exchange Traded Fund (ETF). This strategic move aims to launch the first ETF providing institutional investors with direct spot exposure to the AI-driven cryptocurrency, TAO. Following this announcement, the price of TAO surged past $220, reversing earlier losses.

SEC Filing for Bittensor ETF

The SEC filing details Grayscale's intention to list the fund on the NYSE under the ticker 'GTAO'. The ETF will include tokens acquired from staking activities, with Bank of New York Mellon serving as the transfer agent. Furthermore, Coinbase has been appointed as the Trust's primary broker, while BitGo acts as an additional custodian.

Regulatory Milestones

This filing follows the recent initiation of trading for the Grayscale Bittensor Trust on the OTCQX market under the ticker 'GTAO', subsequent to the SEC's approval of its Form 10. As an SEC reporting company, Grayscale benefits from a reduced holding period of six months under Rule 144 of the Securities Act, once specific conditions are met. The registration statement for the ETF is anticipated to become effective in the upcoming year.

Grayscale's portfolio already includes several crypto ETFs covering assets like Bitcoin, Ethereum, and Solana. The company has also submitted an updated S-1 for an Avalanche ETF, indicating its continuous expansion in the crypto ETF space.