The Tuesday N-1A filing details an approach that includes investing up to 60% of a fund’s assets directly in the underlying token, with the remainder allocated to exchange-traded products and, potentially, derivatives such as futures and swaps.
The SEC filing was made the same day Grayscale submitted a filing to convert its bittensor trust to an exchange-traded product. Barry Silbert, chairman of Grayscale, said in a post on X that the move reflects how quickly decentralized AI is evolving as one of the newest investable themes in U.S. crypto markets.
Bittensor operates as an open network that uses crypto-economic incentives to coordinate machine learning development, rewarding contributors of models and computing power with TAO. The project has drawn growing attention as investors seek exposure to AI-related crypto assets beyond traditional smart contract platforms.
Bitwise’s applications underscore how quickly issuers are expanding beyond bitcoin and ether following the success of spot ETFs tied to the two largest cryptocurrencies. The firm has previously introduced spot ETFs linked to bitcoin, ether, solana and XRP, and has filed additional applications tied to assets such as sui and hyperliquid.
