Bittensor’s native token TAO jumped above the $220 level after Grayscale Investments filed for the first-ever U.S. exchange-traded fund tied to the Bittensor ecosystem, reigniting bullish sentiment across the market.
TAO gained momentum within 24 hours of the filing, as traders began speculating on a potential rally toward the $300 mark by early January 2026. The move coincided with a broader crypto market rebound, which pushed total market capitalization up 1.04% to $2.99 trillion.
Major cryptocurrencies traded firmly, with Bitcoin holding above $88,000 and Ethereum near $2,900. Altcoins including BNB, XRP, SOL, DOGE, and ADA also posted modest gains, improving overall market confidence and strengthening demand for emerging AI-linked tokens like TAO.
Grayscale moves to launch first Bittensor ETF
Grayscale submitted an S-1 registration statement to the U.S. Securities and Exchange Commission to convert its Grayscale Bittensor Trust into a spot ETF under the ticker GTAO. If approved, the fund will trade on NYSE Arca, offering investors direct exposure to TAO for the first time in a regulated U.S. market.
The filing lists Coinbase Custody Trust Company and BitGo Trust Company as custodians of the underlying assets. Grayscale has not yet disclosed the ETF’s expense ratio or target launch date, and the proposal still awaits regulatory approval.
This is on the heels of the ETF application that occurred after Bittensor’s first-ever halving in mid-December, which reduced daily token mintage from 7,200 TAO to 3,600 TAO. This is expected to further impact the availability of tokens in circulation and market reactions.
In the past, the Bittensor Trust had been distributed by Grayscale to selected investors via a private placement. The company is now seeking to list its services in public markets in a move to make the services widely available and position itself as a market leader in the provision of institutional-grade cryptocurrency investment products.
TAO technical levels draw trader focus
TAO traded near $223 at the time of writing, marking a 0.63% daily increase. The price continues to consolidate above the $220 support zone, a level traders now view as critical for maintaining bullish structure.
Indicators of momentum are mixed. The RSI currently sits at 49.31-only slightly below neutral-reflecting indecision rather than overbought market conditions. The MACD indicator is remaining flat, and its bars of histogram are hovering close to zero, indicating that traders are on the sidelines waiting for a clearer directional breakout.
Indicators of momentum are mixed. The RSI currently sits at 49.31-only slightly below neutral, reflecting indecision rather than overbought market conditions. The MACD indicator is remaining flat, and its bars of histogram are hovering close to zero, indicating that traders are on the sidelines waiting for a clearer directional breakout.
On the downside, sellers could test control if TAO drops below $220. In that scenario, traders expect stronger support to form near the $200 level.
As Grayscale’s ETF filing puts Bittensor in the institutional spotlight, market participants now watch both regulatory signals and key technical levels to determine whether TAO can sustain its bullish trajectory into the new year.
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