Grayscale Trust's ETP Conversion Proposal
- Grayscale files for Bittensor Trust ETP conversion with SEC.
- Backed by existing crypto trust management experience.
- GTAO to list on NYSE Arca for broader access.
Grayscale Investments has filed an S-1 with the SEC on December 30, 2025, to convert the Bittensor Trust into the first U.S.-listed ETP offering exposure to the TAO token.
This filing highlights Grayscale’s role in pioneering ETPs in decentralized AI, impacting TAO’s market performance with a notable price uptick post-announcement.
Grayscale has filed a registration statement with the SEC to convert its Bittensor Trust into an exchange-traded product (ETP). This move could provide retail investors with regulated access to the Bittensor network’s native TAO token.
The S-1 filing marks Grayscale Investments as the main entity involved. The trust is set to list shares on NYSE Arca with Bank of New York Mellon as the transfer agent.
The filing does not specify new funding or institutional allocations. This development aims to enhance the Bittensor network by securing regulatory compliance and facilitating wider market exposure.
Grayscale’s action illustrates the growing interest in decentralized AI projects. The trust’s shift to ETP seeks to reduce holding periods, potentially increasing liquidity and accessibility.
Historical precedent shows Grayscale has succeeded in similar conversions. Past conversions of Bitcoin and Ethereum trusts boosted liquidity, offering lessons for Bittensor’s future.
Grayscale’s experience reflects the potential for market growth, with previous conversions enhancing institutional interest. Bittensor’s TAO token, used for AI incentives, recently experienced a 52% decline, highlighting volatile markets. Barry Silbert, Chairman of Grayscale Investments, noted, “The explosive growth of decentralized AI underscores our role in leading regulated entry points.”
