Grayscale Sets NYSE Arca Listing Route for Bittensor ETF

Grayscale has identified a route to list its Bittensor (TAO) trust on NYSE Arca using existing exchange standards, giving its proposed U.S. ETF conversion a clearer path while leaving trading subject to further checks.

The Oct. 23 amendment to the trust’s preliminary registration statement specifies NYSE Arca’s generic standards for commodity-based trust shares. Grayscale currently does not anticipate a separate proposed rule-change filing by NYSE Arca. The amendment adds detail to the listing route; it does not establish a launch date.

Grayscale had already proposed an NYSE Arca listing in an April filing. Its earlier conversion proposal concerned a trust that holds TAO and trades on OTCQX under GTAO. The current vehicle gives investors exposure to TAO through brokerage accounts while its shares remain on the over-the-counter market.

If the exchange listing proceeds, Grayscale intends to rename the trust the Grayscale Bittensor ETF and retain the GTAO ticker. Authorized participants would be able to create or redeem shares in baskets of 10,000, using either TAO or cash. Those transactions are part of the proposed exchange-traded structure, rather than a feature available to every shareholder.

The existing OTCQX shares have at times changed hands at substantial premiums or discounts to the trust’s net asset value per share. That measure accounts for the trust’s expenses and liabilities. The proposed creation and redemption process sets out how authorized participants could exchange assets or cash for shares, or return shares to the trust.

The existing trust’s total expense ratio was 2.50% as of Oct. 23. The amendment leaves the proposed ETF’s sponsor-fee field blank. It names BitGo Bank & Trust as primary custodian, with Coinbase Custody in an additional custody role. BitGo’s primary role had appeared in an earlier filing signed Oct. 5.

Before exchange trading can begin, TAO must meet the applicable eligibility criteria and NYSE Arca must confirm that the shares satisfy its listing requirements. The registration statement remains preliminary.