The Bitwise Bittensor Strategy ETF is a pending crypto strategy fund targeting Bittensor (TAO), a decentralized AI network that uses crypto-economic incentives to coordinate machine learning development. Filed with the SEC in December 2025, this application represents growing institutional interest in AI-crypto convergence. Bittensor rewards contributors of models and computing power with TAO tokens, creating an open alternative to centralized AI development.

The fund employs a strategy structure, allocating up to 60% of assets directly in TAO tokens with the remainder in exchange-traded products and derivatives. This approach balances direct participation in Bittensor's AI ecosystem with operational flexibility. The hybrid model allows investors to gain exposure to decentralized AI infrastructure without running nodes or contributing computational resources.

Pending regulatory approval, this ETF would provide one of the first regulated vehicles for investing in decentralized AI networks. The filing comes alongside Grayscale's separate Bittensor Trust conversion application, indicating significant institutional attention to TAO. If approved, it would capitalize on growing investor interest in AI-related crypto assets beyond traditional smart contract platforms.