Bittensor price increases by 10% after Grayscale officially announces TAO Trust

Bittensor (TAO) surged nearly 10% during Tuesday’s trading session, surpassing $290 USD after Grayscale officially announced the Grayscale Bittensor Trust (GTAO). This is one of the first managed investment products offering institutional investors access to the decentralized AI network.

This rally has pushed TAO to its highest level in several weeks, with 24-hour trading volume exceeding $230 million USD. The event reflects growing institutional interest in AI-linked cryptocurrencies, especially those with slowing supply growth.

Grayscale expands access to TAO through managed investment product

Grayscale stated that the GTAO Fund allows investors to access Bittensor’s TAO tokens via traditional securities, without needing to directly purchase or store digital assets. The fund’s shares are traded on OTC Markets under the ticker Grayscale Bittensor Trust (GTAO).

According to Grayscale, GTAO is designed to track the market price of TAO based on Coin Metrics’ real-time reference index, after deducting fees and expenses. As of January 5th, the fund reported a total expense ratio of 2.5% and a net asset value of $7.96 per share.

Bittensor Price Chart | Source: CoinphotonThe fund’s launch follows a series of significant changes within the Bittensor ecosystem. In mid-December, the network completed its first halving event, reducing daily TAO issuance by approximately 50%. This move helps control inflation and tighten supply, aligning Bittensor’s structure with Bitcoin’s scarcity model.

Additionally, Grayscale has filed with US regulators to convert the Bittensor Trust into a spot ETF. This is part of Grayscale Investments’ broader strategy to expand its managed cryptocurrency product offerings beyond Bitcoin and Ethereum. While approval timing remains uncertain, this move has strengthened TAO’s position among institutional investors.

Bittensor operates as a decentralized marketplace for artificial intelligence, where participants can earn TAO by providing computational and AI services to the network. The protocol has gained increasing attention as investors seek blockchain solutions as alternatives to traditional centralized AI infrastructure.

With reduced issuance, increased staking activity, and new managed access channels, recent TAO price movements indicate the market is reassessing the long-term potential of this asset.

Mr. Giáo