Grayscale files for first U.S. Bittensor ETP as decentralized AI gains momentum

Core Viewpoint - Grayscale is seeking to provide U.S. investors with exposure to Bittensor's TAO through the first U.S.-listed exchange-traded product (ETP) focused on decentralized artificial intelligence [1][2][5] Group 1: Grayscale's Initiative - Grayscale has filed an initial S-1 registration statement with the U.S. Securities and Exchange Commission for the Grayscale Bittensor Trust, which is expected to trade under the ticker GTAO [2][3] - The proposed trust would hold TAO directly, allowing regulated access to one of the largest tokens in the decentralized AI space, with TAO's current market cap at approximately $2.3 billion [2][4] Group 2: Industry Context - Barry Silbert, chairman of Grayscale, highlighted the rapid evolution of decentralized AI and Grayscale's role in providing access to this emerging sector [3] - The filing represents the first ETP for TAO in the U.S., following a similar initiative by Deutsche Digital Assets to list a Bittensor ETP on the SIX Swiss Exchange under the ticker STAO [3][5] Group 3: Market Dynamics - Bittensor operates as an open network that incentivizes machine learning development through crypto-economic rewards, attracting interest from investors looking for AI-related crypto assets beyond traditional platforms [4] - The filing indicates a growing trend among asset managers to create regulated investment products around emerging crypto narratives, reflecting an increasing institutional interest in decentralized AI [5]