Grayscale Amends S-1 for Bittensor Trust ETF Listing on NYSE Arca

Highlights:

• Grayscale filed an amended SEC form to list its Bittensor Trust ETF on NYSE Arca.
• The proposed ETF would hold real TAO, with Coinbase and BitGo handling custody.
• SEC approval is still pending, but the filing brings TAO closer to traditional investors.

Grayscale Investments is moving closer to bringing Bittensor (TAO) to traditional investors. The company on Thursday filed an amended S-1 form with the U.S. Securities and Exchange Commission to list the Grayscale Bittensor Trust ETF on NYSE Arca under the ticker GTAO. If approved, the ETF would give regular investors a simpler way to get exposure to TAO. They would be able to invest through a regulated exchange without buying, storing, or managing the token themselves.

Grayscale Details Bittensor ETF Structure and Custody Setup

Grayscale initially filed the S-1 on 30 December to convert the Bittensor Trust into an ETF, and the latest filing is an amendment to that application.

The filing is an important step for TAO, a token tied to decentralized artificial intelligence. Once seen as a niche altcoin, TAO is now among a small group of digital assets with active spot ETF filings from major asset managers. The proposed ETF would work as a passive investment product. Its main aim is to track the price of TAO held by the Trust, after deducting fees and other expenses. 

Grayscale’s amended prospectus shows a structure that will be familiar to ETF investors. Shares would be created and redeemed in blocks of 10,000, known as baskets, through authorized participants. The filing says the trust can process both in-kind creations and redemptions using TAO, as well as cash orders. This setup is meant to help the product run more smoothly and efficiently if it is listed on NYSE Arca.

The filing also identifies the main firms involved in running the product. Coinbase, Inc. would act as the prime broker, while Coinbase Custody Trust Company and BitGo Trust Company would serve as custodians. Bank of New York Mellon would serve as the fund’s administrator and transfer agent.

Grayscale also clarified that the Trust cannot currently stake its TAO holdings. Staking, which lets token holders earn rewards for supporting network operations, remains off-limits until specific regulatory and operational conditions are met. If staking ever becomes permitted, any rewards would go to the Trust and could support share value over time.

⚡️JUST IN: Grayscale files an amended S-1 for its Bittensor ($TAO) Trust, advancing its push to expand institutional access to AI-focused crypto assets. pic.twitter.com/TmtseCAx0e

— Coin Bureau (@coinbureau) April 3, 2026

Filing Gives a Clearer Picture of TAO and the Bittensor Network

The filing also explains Bittensor to investors in simple terms. Bittensor is a decentralized network where AI models are tested and ranked through a system called Yuma Consensus. Miners submit AI models, while validators check the quality of their output. After that, rewards are shared based on performance and the amount of TAO supporting the validators.

The prospectus says Bittensor launched its Dynamic TAO, or dTAO, upgrade in February last year. This update gave each subnet its own token and changed staking to a liquidity-pool system. Grayscale says these features are still new and experimental, which adds risk for investors.

The filing also says TAO had about 11 million tokens in circulation as of 31 December, with a maximum supply of 21 million. At that time, its market value was around $2.3 billion, making it the 35th-largest cryptocurrency. By the filing date, Grayscale said TAO’s market value had grown to about $3.3 billion, with average daily trading volume of about $180.1 million over the previous 30 days.

What Comes Next for the ETF Application

The SEC must still approve the registration statement before the Trust can list on NYSE Arca. The review will focus on custody, pricing, market surveillance, and investor protection. Grayscale said the Trust will use the CoinDesk Bittensor Benchmark Rate to calculate net asset value. 

The filing also points out risks such as price volatility, regulatory risks, and risks of disruptions caused by network upgrades or forks. The Trust is now trading on the OTCQX under the symbol GTAO. Listing on NYSE Arca can help increase investor accessibility and raise awareness of TAO.