- Grayscale filed to convert its GTAO investment product to a spot Bittensor ETF in the US.
- It aims to launch the ETF on NYSE Arca, with Coinbase and BitGo as its custodians.
- The event comes hot on the heels of Bittensor’s first halving, which cut its daily token issuance from 7,200 to 3,600 TAO.
Fresh from its halving event in mid-December, another explosive development has come to Bittensor (TAO). Grayscale, the world’s largest digital asset-focused investment platform, has filed for a spot exchange-traded fund (ETF) conversion of the Grayscale Bittensor Trust (GTAO) at the US Securities and Exchange Commission (SEC) on Tuesday.
The Upcoming Grayscale Spot Bittensor ETF
The move marks a significant milestone for Bittensor. It’s the first attempt of a large institution to launch a spot ETF in the US with direct exposure to TAO.
The registration statement indicates that the Bittensor ETF will trade on NYSE Arca under its old ticker GTAO. Additionally, Coinbase Custody Trust Company, LLC, and BitGo Trust Company, Inc., will serve as custodians of the new investment vehicle.
GTAO closed at $8.80 as of Tuesday’s market. Meanwhile, the Trust has over 1.88 million shares outstanding at $0.01923757 per share, with a $4.23 Net Asset Value (NAV) per share. It currently has a total expense ratio of 2.5% and has already accumulated more than $7.96 million in assets under management (AUM).
A Grayscale spokesperson stated that the company’s decision to apply for a spot Bittensor ETF was due to growing investor demand for digital asset exposure.
The TAO Halving
Bittensor is like Bitcoin (BTC) on steroids. It runs on an open-source protocol that powers a decentralized, blockchain-based AI machine learning network. The platform allows participants to contribute compute power, models, and data to a shared, community-owned intelligence network, which rewards them with TAO tokens.
The chain’s native token has a hard cap of 21 million TAO, a circulating supply of 10.55 TAO, and a market cap of over $2 billion. It also has a halving event triggered by a predetermined condition to mitigate inflation of its token supply and ensure long-term scarcity.
Unlike Bitcoin, which halves miner rewards every 210,000 blocks in approximately every 4 years, Bittensor automatically halves the issuance of new TAO tokens based on its circulating supply. The latest was when 50% of its 21 max token supply (10.5 million TAO) was already in circulation.
Bittensor’s first halving event occurred in the middle of this month, reducing its daily issuance from 7,200 to 3,600 TAO. It happened four years after the chain’s launch in 2021.
The network’s next halving is estimated to occur around 2029, further slashing its daily token issuance to 1,800 TAO.
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