Bittensor (TAO) Jumps 10% After Grayscale Launches Regulated GTAO Trust

Bittensor (TAO) recorded a strong price rally on Tuesday, surging nearly 10% to move above the $290 level following Grayscale’s official launch of the Grayscale Bittensor Trust (GTAO). The announcement marked a major milestone for the decentralized AI network, as it represents one of the earliest regulated investment products offering institutional-style exposure to TAO without direct token ownership.

The price surge pushed TAO to its highest level in several weeks, supported by a notable increase in market activity. According to market data, 24-hour trading volume exceeded $230 million as investor interest intensified. The rally reflects growing confidence in AI-focused crypto assets, especially projects with improving supply dynamics and expanding institutional accessibility.

Grayscale confirmed that the Grayscale Bittensor Trust allows accredited investors to gain exposure to TAO through a traditional securities structure. This removes the need for investors to directly buy, store, or manage the native token themselves. Shares of the Trust trade on OTC Markets under the ticker symbol GTAO, further aligning the product with conventional investment channels.

The Trust is designed to track the market price of TAO using the Coin Metrics Real-Time Bittensor Reference Rate, adjusted for fees and expenses. As of January 5, the Trust reported a net asset value of $7.96 per share and a total expense ratio of 2.5%. These details provide investors with greater transparency as interest in regulated crypto products continues to rise.

The launch also follows important structural changes within the Bittensor ecosystem. In mid-December, the network completed its first halving event, cutting daily TAO emissions by approximately 50%. This reduction in token issuance has lowered inflation and introduced tighter supply conditions, drawing comparisons to Bitcoin’s scarcity-driven economic model.

In addition, Grayscale has filed with U.S. regulators to convert the Bittensor Trust into a spot ETF. While approval timelines remain unclear, the filing has strengthened expectations of broader institutional access to TAO in the future.

Bittensor operates as a decentralized marketplace for machine intelligence, rewarding participants with TAO for contributing compute power and AI services. With reduced supply growth, increasing staking participation, and new regulated investment pathways, TAO’s recent price movement suggests that markets are reassessing its long-term potential within the evolving AI and crypto landscape.