Grayscale Can't Get Enough of Bittensor: TAO Allocation Zooms From 31% to 43%

Grayscale just went all-in on Bittensor. The investment giant bumped $TAO's allocation in its AI-focused crypto portfolio from a respectable 31.35% to a chunky 43.06% in its latest rebalance — basically screaming from the rooftops that they think the AI token is the hottest thing since someone figured out how to mine Bitcoin with a gaming laptop.

The rebalance didn't bring any fresh meat to the fund. Everything else just got diluted like a sad whiskey at a college party. $NEAR Protocol's share slipped to 24.43% from 26.54%, Filecoin fell to 9.86% from 13.77%, The Graph dropped to 4.15%, and Story's weight was cut to 2.73%. Render was the only other asset to post a slight increase, climbing to 15.77%.

Grayscale has also filed an updated registration statement with the U.S. SEC for a Bittensor-based investment product. The proposed Grayscale Bittensor Trust would directly hold $TAO and track its market price, with plans to convert into an ETF and list on NYSE Arca if approved. Because nothing says "we believe in decentralized AI" quite like listing on the NYSE.

$TAO is currently valued at around $6.2 billion, buoyed by the network's expansion to 128 subnets. These subnets are independent AI-focused networks — essentially open-source startups building within the Bittensor framework. It's like a shopping mall, but instead of stores selling overpriced sneakers, you've got 128 different AI companies all running on the same real estate.

The ecosystem's utility narrative is getting stronger. Targon Compute, one of Bittensor's subnets, reportedly generated $105,000 in revenue over the past week, translating to an annualized run rate of roughly $5.5 million. Not bad for a project with a relatively modest valuation of about $82 million FDV. That's like finding out your friend's side hustle is making more money than your salary.

At the time of writing, $TAO was trading at $321.74, posting a daily gain of 3.70% after hitting a high of $329.95. The uptrend from mid-March remains intact, but price action suggests consolidation just below the $330-$360 resistance zone. Classic "let's catch our breath before we moon" behavior.

The RSI indicated bullish momentum without being overheated. However, the MACD was showing some weakness — the Signal line pulled ahead of the MACD line and the histogram turned negative. Technical traders are squinting at their charts trying to figure out if this is a dip to buy or a dip to cry.

Bottom line: Grayscale doubled down on $TAO, and the token's growing ecosystem seems to be backing up the bullish thesis. Either the smart money knows something, or they're just really good at making AI-themed altcoins look sexy on a portfolio slide.