Grayscale Announces the First US-Listed Bittensor ETP as Interest in Decentralized AI Grows

Grayscale has filed an initial S-1 registration statement with the Securities and Exchange Commission (SEC) for what will be the first exchange-traded product (ETP) in the United States to provide direct exposure to the TAO token of Bittensor, a leading decentralized artificial intelligence network. This move reflects the growing momentum of institutional investors seeking exposure to emerging crypto assets connected to the decentralized AI sector.

SEC S-1 Filing for Grayscale Bittensor Trust

The Grayscale Bittensor Trust, which will be designated under the ticker symbol GTAO if approved, will be a regulated vehicle providing US-based investors access to the TAO token without needing to directly purchase or manage the tokens. The filing demonstrates Grayscale’s strategic direction toward expanding products that cater to the increasing interest of professional investors in artificial intelligence and machine learning technologies on blockchain.

In its statement, Grayscale said this is “the next step toward converting the trust into an ETP.” This process typically requires regulatory review and approval from the SEC, a process that could take several months.

The TAO Token and Bittensor’s Decentralized Machine Learning Infrastructure

Bittensor operates as an open-source network that uses crypto-economic incentives to coordinate collaborative development of machine learning models. The TAO token is used to reward contributors who offer computing power and machine learning expertise to the network. Currently, the TAO has an approximate flow market capitalization of $1.90 billion, reflecting the growing valuation of the decentralized AI sector.

Bittensor’s model differs from traditional centralized AI platforms because it offers a transparent, decentralized approach to machine learning development where individual contributors directly earn from their contributions. This mechanism has inspired broader perspectives on how blockchain technology can democratize access to AI infrastructure.

Growing Demand for Decentralized AI Investment Products

Grayscale’s move follows significant institutional interest in decentralized AI cryptoassets. This increase is part of a larger trend where professional investors seek regulated, accessible vehicles to gain exposure to emerging technologies not available through traditional stock markets.

Prior to this Grayscale filing, Deutsche Digital Assets, a German ETP provider, announced plans to list a Bittensor ETP on the SIX Swiss Exchange under the ticker STAO. This global interest in Bittensor products indicates a larger shift toward acceptance of decentralized AI as a legitimate investment category.

Barry Silbert, chairman of Grayscale, highlighted the rapid evolution of the decentralized AI landscape and Grayscale’s strategic positioning as a leader in providing access to the sector. This sentiment reflects a broader industry perspective that decentralized AI infrastructure will be a critical component of the future digital economy.

Implications for Bittensor and the Decentralized AI Ecosystem

The approval of the Grayscale Bittensor Trust will open doors for broader institutional participation in the Bittensor network and the decentralized AI sector overall. Access through regulated products like ETPs can help reduce entry barriers for risk-averse investors seeking exposure to this emerging technology trend.

For Bittensor itself, listing in the US market via Grayscale could accelerate adoption and legitimacy of the platform in the eyes of professional investors. This accessibility could trigger increased network activity and more participants in the machine learning contribution ecosystem.

While SEC approval is not guaranteed, the filing itself reflects a structural shift in how asset managers are attempting to integrate emerging crypto narratives, particularly decentralized AI, into regulated investment products. This trend demonstrates the maturity of the crypto market and the growing institutional appetite for differentiated exposure to this sector.