Grayscale Investments continues its process of bringing Bittensor (TAO) closer to traditional investors. The company recently filed an updated S-1 with the SEC to offer the Grayscale Bittensor Trust ETF on NYSE Arca, under the ticker symbol GTAO. Should the filing receive approval, the ETF will provide access to TAO for investors without having to directly buy and manage the token.
Source: SEC
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Bittensor ETF Filing Moves Forward
The first S-1 filing was done by Grayscale in December for the conversion of the Bittensor Trust to an ETF, and this filing is an update to the previous filing. This ETF will be a passively managed product whose objective will be to mirror the performance of the TAO token held by the Bittensor Trust.
ETF shares will be issued or redeemed in groups of 10,000, known as baskets, via the authorized participants. The trust will manage both in-kind creations or redemptions with TAO as well as cash order creation and redemption.
The ETF structure consists of some important participants, namely, Coinbase, Inc., acting as the primary broker, Coinbase Custody Trust Company and BitGo Trust Company functioning as the custodian, and Bank of New York Mellon as the administrator and transfer agent.
However, at present, the Trust is not permitted to stake its TAO tokens. This can be done only when all requirements are satisfied. Should there be an opportunity to stake the TAO tokens, all earnings would go directly to the Trust.
Bittensor ETF Sparks Investor Interest
This filing will provide a brief introduction to Bittensor. It can be referred to as an AI decentralized network, whereby different models are evaluated and ranked using something known as the Yuma consensus. In this network, miners upload the AI model, and validators evaluate the models and distribute rewards accordingly.
Bittensor made a major update in February last year by implementing Dynamic TAO (dTAO). It involves issuing distinct tokens for each subnet and using the liquidity pool system for staking. Grayscale states that this is relatively new, thus making it risky for investors.
Grayscale Seeks SEC TAO Approval
This registration needs the SEC’s approval for the Trust to be listed on NYSE Arca. The areas of focus would be custody, pricing, market surveillance, and investor protection. The CoinDesk Bittensor Benchmark Rate will be used for calculating the net asset value of the Trust.
In addition, there are other risks like volatility in prices, changes in regulations, and even disturbances in the network. As of now, Trust is listed on OTCQX as GTAO. With the listing of TAO on the NYSE Arca, investors will have greater access to TAO.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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