Grayscale's TAO Application Stirred the Crypto Market

Grayscale's New Application Related to TAO

Grayscale has made another noteworthy move that has caught attention in the crypto market. The company has submitted a Form 10 application to the U.S. Securities and Exchange Commission (SEC) for the Bittensor Trust (TAO). This significant step increases Bittensor's potential to reach a wider investor base.

Rapid Liquidity and New Investors

The primary aim of Grayscale's application is to reduce the private placement holding period from 12 months to 6 months. By doing so, Grayscale aims to attract potential new institutional investors by offering faster liquidity to early supporters. If the application is approved, Grayscale will begin reporting under Section 12(g) of the Securities Exchange Act, providing a new level of transparency for TAO investors.

New Transparency and Accessibility

In a statement, Grayscale said, "We have filed Form 10 for the Grayscale Bittensor Trust ($TAO). This is the first step toward becoming an SEC Reporting Company and will enhance its accessibility, transparency, and regulatory status." If Form 10 comes into effect, Grayscale will be able to publicly offer shares of the trust in OTC markets, similar to its existing products (GBTC and ETHE). This step is significant in making TAO a publicly traded investment product.

TAO's Market Performance

Recent developments have positively impacted Bittensor's native token, TAO. TAO has gained nearly 30% in value over the last 24 hours, surpassing the $409 level. Data provided by CoinMarketCap shows that the company's market capitalization has reached $4.12 billion. This growth is seen as a reflection of the confidence garnered from Grayscale's application.

This move could have significant effects on the future of AI tokens like TAO. Crypto investors may consider the potential of Bittensor in light of Grayscale's new application.