> ## Content Index > Fetch the complete content index at: https://www.tao.media/llms.txt > Use this file to discover other available public pages before exploring further. # Grayscale Details NYSE Arca Listing Plan for Bittensor ETF in Amended S-1 - URL: https://www.tao.media/grayscale-details-nyse-arca-listing-plan-for-bittensor-etf-in-amended-s-1/ - Published: 2026-10-26T14:39:44.000Z - Updated: 2026-10-26T14:39:45.000Z - Description: The proposed conversion would give GTAO an ongoing creation and redemption mechanism, while staking remains prohibited. - Author: Bart Hillerich - Tags: Grayscale, TAO, News Grayscale has filed an [amended registration statement](https://www.sec.gov/Archives/edgar/data/2029297/000119312526430543/gtao%5Fs-1%5Famendment%5F2.htm?ref=tao.media) to convert its Bittensor Trust into a spot TAO exchange-traded product on NYSE Arca, setting out a generic-listing route and a framework for creating and redeeming shares in exchange for tokens or cash. The Oct. 23 filing is Amendment No. 2 to the trust’s Form S-1\. Grayscale intends to rename the vehicle Grayscale Bittensor ETF and retain its GTAO ticker, currently used on OTCQX, when the registration becomes effective and the shares are listed. The proposed structure would pair brokerage-based exposure to Bittensor’s native token with an ongoing basket creation and redemption mechanism for investors. The conversion remains conditional on the registration statement becoming effective and NYSE Arca confirming that all applicable listing requirements have been met. ## The Generic-Listing Route to NYSE Arca Grayscale plans to use NYSE Arca Rule 8.201-E’s generic standards for Commodity-Based Trust Shares. Under that route, the trust does not currently expect the exchange to submit a separate proposed rule change under Rule 19b-4 for GTAO’s listing. The trust intends to list once TAO meets the eligibility requirements in Rule 8.201-E(d)(1). That condition makes the token’s qualification under the exchange’s standards a necessary part of the listing process, alongside the effectiveness of the securities registration. The vehicle would hold TAO rather than use leverage or derivatives to obtain exposure. Its investment objective is to reflect the value of its TAO holdings, less expenses and other liabilities. Bittensor operates a decentralized network for AI services; GTAO shares represent an interest in the trust holding its token, not direct ownership of TAO in an investor-controlled wallet. This would be a conversion of an existing investment vehicle. An [Oct. 13 Form 8-K](https://www.pubt.io/view/8899C72DED2429D1B6306AB17875941ADE7FFC2D?ref=tao.media) reported 3,247,300 shares outstanding after the trust issued 253,100 shares in private placements. Grayscale’s subsequently updated fund data put the total at 3,342,000 shares and approximately $16.2 million in assets under management as of Oct. 23. ## How TAO and Cash Basket Transactions Would Work Authorized Participants, which are registered broker-dealers, would create and redeem shares directly with the trust in baskets of 10,000\. Other investors would buy and sell shares on the exchange rather than submit individual shares to the trust for redemption. The prospectus provides for two transaction paths. In an in-kind order, an Authorized Participant or its designee delivers TAO to the trust in exchange for a basket of shares, or returns a basket to receive TAO. In a cash order, a liquidity provider buys or sells TAO to facilitate the transaction, with the transfer agent and Grayscale coordinating the process. NYSE Arca has received regulatory approval permitting the trust’s in-kind creations and redemptions. That permission concerns the transaction mechanism; trading in GTAO on NYSE Arca still depends on the listing and registration conditions. Cash redemptions would require Grayscale’s written approval on a case-by-case basis. The sponsor would consider factors including liquidity-provider availability and the cost of cash transactions relative to in-kind orders. The creation and redemption mechanism gives market participants a way to exchange shares for their underlying asset value, supporting arbitrage when the exchange price diverges from that value. It addresses a practical issue for the existing OTC product, whose shares have traded at premiums and discounts to the value of the assets they represent, sometimes substantially. Net asset value would be determined each business day using the CoinDesk Bittensor Benchmark Rate calculated at 4 p.m. New York time. As of Sept. 30, the benchmark’s constituent platforms were Binance, Bitstamp by Robinhood, Crypto.com, Kraken, and OKX. NAV per share is the trust’s net asset value divided by its outstanding shares. ## Custody and the Cost of Holding GTAO The proposed operating structure retains BitGo Bank & Trust as primary custodian and Coinbase Custody Trust Company as additional custodian, following the [addition of Coinbase to GTAO’s custody arrangements](https://www.tao.media/grayscale-bittensor-trust-adds-coinbase-as-tao-custodian-alongside-bitgo/) earlier this month. Grayscale’s policy is to keep substantially all of the trust’s TAO in cold storage with BitGo, with a limited portion held in cold storage at Coinbase Custody for redundancy. Coinbase, Inc. is the prime broker, while The Bank of New York Mellon is the transfer agent and administrator. The existing trust’s [total expense ratio is 2.50%](https://www.grayscale.com/funds/grayscale-bittensor-trust?ref=tao.media). The preliminary ETF prospectus leaves the proposed sponsor-fee percentage unfilled, so the current expense ratio is not a confirmed fee for the converted product. Grayscale does not presently intend to waive the sponsor’s fee. Under the proposed arrangement, that fee would accrue daily and be paid in TAO from the trust’s BitGo account. Paying expenses from token holdings reduces the amount of TAO represented by each share over time. The trust would also abandon rights and assets arising from forks, airdrops, or similar events rather than distribute them to shareholders. Its exposure is therefore centered on TAO itself, not additional tokens that holders might receive through those events. ## Staking Depends on a Tax Condition The trust is currently prohibited from staking its TAO. Although its agreement allows for possible staking in the future, a specified tax-related condition has not been met. To satisfy that condition for a particular form of staking, the trust would need a written tax-adviser opinion or a tax ruling supporting continued grantor-trust treatment, or applicable tax guidance confirming that the activity is permissible for a grantor trust. This treatment generally attributes the trust’s assets and income to its owners for federal income-tax purposes. If the condition and related requirements are satisfied, Grayscale could stake a portion of the holdings through Bittensor’s staking or delegation mechanism to receive additional TAO. The sponsor may also choose not to pursue staking. If it does proceed, the trust plans to file further SEC disclosures describing the staking arrangements.