Grayscale Investments is moving forward with plans to list the Grayscale Bittensor Trust, a vehicle providing investment exposure to the digital asset TAO, on NYSE Arca under the ticker symbol “GTAO.”
The Delaware statutory trust, which currently trades on the OTCQX, will rename itself Grayscale Bittensor Trust ETF once its registration statement becomes effective and a Certificate of Amendment is filed with the Delaware Secretary of State.
The Trust issues common units representing a fractional undivided beneficial interest in the underlying TAO assets, which are digital tokens based on the open-source cryptographic protocol of the Bittensor Network.
While owning the Trust’s shares does not constitute direct ownership of TAO tokens, the structure is designed to offer a cost-effective and convenient way to gain investment exposure to TAO’s price performance.
The Trust’s investment objective is for the value of the GTAO shares to reflect the value of the TAO held by the Trust, including TAO earned through staking consideration if and when staking is implemented.
However, the prospectus makes clear that no staking of the Trust’s TAO will occur at this time, and there is no assurance that the Trust or its service providers will ever be permitted to engage in staking or other income-generating activities.
The Trust is sponsored by Grayscale Investments Sponsors, LLC, with CSC Delaware Trust Company serving as trustee. The Bank of New York Mellon acts as transfer agent and administrator, while Coinbase, Inc. is the prime broker, and Coinbase Custody Trust, alongside BitGo Trust Company, serve as custodians of the underlying TAO assets.
Once listed on NYSE Arca, the Trust expects to issue an indeterminate number of shares continuously, with prices determined by reference to TAO markets and the trading price on the exchange. Shares are created and redeemed in blocks known as baskets, typically consisting of 10,000 shares, through authorized participants via in-kind or cash orders.
The prospectus highlights that investing in GTAO involves significant risks, and potential investors should review the Trust’s risk factors carefully. The Trust is classified as an emerging growth company with reduced reporting requirements and is not registered under the Investment Company Act, meaning shareholders do not benefit from certain investor protections found in traditional investment funds.