Grayscale is making big moves in the crypto space again, this time with Bittensor (TAO). The company has filed paperwork with the U.S. Securities and Exchange Commission (SEC) to turn its current Bittensor Trust into a full-blown exchange-traded fund (ETF). If approved, this would be the first ETF to give institutional investors direct exposure to the AI-focused TAO token.

This new ETF is planned to trade under the ticker symbol “GTAO” on NYSE Arca. It will hold TAO tokens and also include staking rewards as part of its earnings. Grayscale plans to use crypto staking to generate extra income for the fund.

The Bittensor network itself recently hit a major milestone. On December 14, it went through its first halving event, cutting daily token supply from 7,200 TAO to 3,600. This lower supply could drive up prices over time, and traders have already responded positively. After the ETF news broke, TAO’s price rebounded above $220, erasing earlier losses.

The ETF’s structure will use what’s known as “in-kind” transactions. This means that instead of cash, authorized participants will exchange TAO tokens directly for shares of the ETF. This system is already active in the current Trust and will continue once it becomes an ETF.

Several big names are backing the technical side of this product. Bank of New York Mellon will serve as the transfer agent. Coinbase will act as the main broker, and BitGo will be responsible for securely storing the TAO tokens.

Grayscale’s move follows a recent launch of its Bittensor Trust on the OTCQX market under the same ticker, GTAO. That launch happened after the SEC approved its Form 10 registration. Becoming an SEC-reporting company allows Grayscale to offer shorter holding periods—just six months under Rule 144, once certain conditions are met.

This timeline suggests that the new Bittensor ETF could officially go live sometime next year.

Grayscale already offers a wide range of crypto ETFs, including those tied to Bitcoin, Ethereum, XRP, Dogecoin, Solana, and Chainlink. The company is also working on an Avalanche ETF, showing its commitment to expanding crypto investment products.

TAO had a strong start to 2024 with prices reaching $520 in January and nearing $500 again in November. While prices have since cooled off, investor interest remains strong—especially with the possibility of a spot ETF on the horizon.