What is the relationship between Grayscale and Bittensor? The first US ETP for TAO is coming soon

Grayscale’s relationship with Bittensor reflects the growing interest of major asset managers in decentralized artificial intelligence. In a significant move for the industry, Grayscale has submitted an initial S-1 registration form to the U.S. Securities and Exchange Commission (SEC), aiming to create the first exchange-traded product (ETP) in the United States that provides regulated access to Bittensor’s TAO token.

Grayscale and Bittensor: The New Partnership in Decentralized AI

The proposed Grayscale Bittensor Trust, which will be traded under the ticker symbol GTAO, will provide direct exposure to TAO for American investors. This is not just a regular product—it reflects the rapid development of the decentralized AI sector within the cryptocurrency landscape.

According to the latest data, Bittensor (TAO) currently has a market capitalization of approximately $1.87 billion, with a price of $194.80 per token. This growth demonstrates how investor confidence is increasing in projects focused on machine learning and artificial intelligence.

Barry Silbert, CEO of Grayscale, highlighted the importance of this move on X, stating “decentralized AI is rapidly evolving, and Grayscale is leading the way in providing access.” This statement underscores the vital connection between digital asset managers and emerging technologies.

Why the Bittensor ETP Matters for Investors

Bittensor operates as an open network that uses crypto-economic incentives to coordinate the development of machine learning. The system rewards contributors of models and computing power with the TAO token. This model offers a unique value proposition not found in traditional blockchain platforms.

For institutional investors, the new ETP will provide a regulated and accessible way to invest in the decentralized AI sector without needing direct interaction with cryptocurrency exchanges. This is a critical step toward normalizing AI-related crypto assets in mainstream financial markets.

The Decentralized AI Market and Grayscale’s Role

Grayscale’s filing follows a global trend of asset managers attempting to integrate emerging crypto narratives into their regulated investment products. Prior to this, Deutsche Digital Assets announced their Bittensor ETP (ticker: STAO), which will be available on the SIX Swiss Exchange, demonstrating that this is not just an American phenomenon but a global movement.

The connection of Bittensor to the decentralized AI ecosystem makes it attractive to investors seeking exposure to the future of machine learning and decentralized networks. As the sector continues to evolve, more institutional players will enter the market, leading to greater liquidity and market maturity.

The rise of AI-focused crypto assets reflects a broader market understanding that blockchain technology and AI can combine to create new opportunities. Grayscale’s move is a clear signal that the industry is ready to mainstream decentralized AI, offering more opportunities for retail and institutional investors to gain exposure to this exciting sector.