Key Takeaways:
- Grayscale has filed Form 10 with the SEC for its Bittensor Trust ($TAO) – the first step toward becoming a reporting company under U.S. securities law.
- The filing could cut private placement holding periods from 12 to 6 months, paving the way for public trading on OTC markets.
- The move reinforces institutional confidence in AI-driven crypto assets, potentially fueling wider adoption of Bittensor’s decentralized AI network.
Grayscale, one of the world’s largest digital asset managers, has taken another decisive step toward integrating artificial intelligence into mainstream crypto investing. On October 12, the company filed a Form 10 for its Bittensor Trust ($TAO) – a regulatory milestone that could bring the AI-focused crypto asset closer to public markets and deeper investor access.
Read More: Grayscale Debuts First-Ever U.S. Spot Crypto ETFs With Staking Rewards
Grayscale Advances Regulatory Path for Bittensor Trust
Grayscale announced the filing through its official X (formerly Twitter) account, calling it “the first step toward becoming an SEC-reporting company – increasing accessibility, transparency, and regulatory standing.”
If the U.S. Securities and Exchange Commission (SEC) deems the Form 10 effective, the Grayscale Bittensor Trust will fall under Section 12(g) of the Securities Exchange Act of 1934. That means the Trust will begin filing quarterly (10-Q), annual (10-K), and current (8-K) reports, including audited financial statements, just like public companies do.
This kind of openness would foster investor trust in $TAO, the original token of Bittensor, a decentralized machine-learning hub that pays AI model contributions in crypto.
According to Grayscale’s filing:
- The firm intends to seek public quotation of Bittensor Trust shares on OTC Markets.
- The filing does not yet classify the Trust as an exchange-traded product (ETP).
- Once the Trust has been reporting for at least 90 days, the private placement holding period may shrink from 12 months to 6, improving liquidity for early investors.
What the SEC Filing Means for Crypto and AI
The Form 10 process is a voluntary registration that often precedes broader financial accessibility. It doesn’t immediately make the Trust tradable on national exchanges, but it establishes compliance foundations, a key requirement if Grayscale later seeks ETP or ETF status.
Market analysts note that Grayscale’s history often sets the tone for broader regulatory adoption. When it began similar filings for Bitcoin and Ethereum trusts, those moves eventually paved the way for spot ETF approvals years later.
“Form 10 filings are a signal that Grayscale wants to legitimize the asset in the eyes of regulators and institutions,” said Marcus Hill, senior analyst at ChainInsights. “Doing this for an AI-related crypto product shows where the next growth narrative lies.”
The timing is strategic. AI-related tokens like $FET, $AGIX, and $RNDR have gained over 150 % year-to-date, drawing massive speculative and institutional attention. It is with this filing that $TAO is joining that elite group, as an intermediate between regulated finance and decentralized AI.
Read More: Grayscale Files S-1 With SEC to Launch Spot Avalanche (AVAX) ETF on Nasdaq
Inside Bittensor – The AI Network Fueling $TAO
Bittensor is a decentralized AI marketplace, with developers and data scientists training models and getting an incentive of $TAO depending on network-validated performance. It is based on subnets, or autonomous modules that run and communicate AI workloads safely through the blockchain instead of using central servers.
This structure would be attractive to institutional investors who are interested in exposure to AI infrastructure but not directly controlling the costs of data center or training. The trust enables the said investors to purchase $TAO using a regulated investment vehicle, avoiding the technical barrier and custody risks.
In accordance with the data provided by Bittensor Explorer, the total value locked (TVL) on the network has increased 30 percent annually, and more than 50,000 transactions are conducted every day, and the number of wallets created has increased significantly since September. These numbers indicate dynamic growth in ecosystems, which might increase faster after the effective SEC filing of Grayscale.
Market Impact and Trading Outlook for $TAO
The news has already rippled across trading desks. Within hours of the announcement, $TAO’s trading volume surged, and sentiment on X turned bullish.
While $TAO has fluctuated between $270 and $400 in recent weeks, technical indicators show potential accumulation. RSI readings around 58–62 suggest moderate bullish momentum, while moving averages point to a medium-term uptrend.
“Every time Grayscale moves toward compliance, liquidity follows,” noted Crypto Rover, a market analyst who first flagged the filing. “Traders should monitor for volatility spikes once the SEC acknowledges the submission on EDGAR.”
