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- Grayscale raised TAO allocation to 43%, signaling strong institutional confidence.
- Bittensor’s subnet ecosystem is driving real revenue and utility.
- TAO price remains bullish but is consolidating below key resistance.
Grayscale is making a clear statement in the fast-growing AI crypto sector. In its latest portfolio rebalance, the asset management giant significantly increased its exposure to Bittensor’s TAO token, reinforcing confidence in one of the market’s most talked-about artificial intelligence plays. The move comes as institutional interest in AI-driven blockchain networks continues to build.
Grayscale Raises TAO Allocation in AI Portfolio
Grayscale boosted TAO’s weighting in its AI-focused fund from 31.35% to 43.06%, making it the dominant holding in the portfolio. Notably, the rebalance did not introduce any new assets or remove existing ones—highlighting that the shift was a deliberate reallocation rather than a structural change.
Other assets saw reduced exposure. NEAR Protocol (NEAR) dropped to 24.43% from 26.54%, while Filecoin (FIL) declined sharply to 9.86%. The Graph (GRT) and Story (IP) also recorded smaller cuts. Render (RENDER) was the only other token to see a slight increase, climbing to 15.77%.
The reweighting suggests a growing institutional preference for Bittensor’s ecosystem and its perceived long-term potential in decentralized AI infrastructure.
Bittensor’s Expanding Subnet Economy Gains Traction
Bittensor’s appeal lies in its unique subnet architecture—independent, AI-focused networks operating within its broader ecosystem. These subnets function like open-source startups, each contributing to the network’s overall value.
The network has now expanded to 128 subnets, strengthening its utility narrative. One standout example is Targon Compute, a subnet reportedly generating around $105,000 in weekly revenue. That equates to an annualized run rate of roughly $5.5 million, despite a relatively modest valuation.
This kind of real-world revenue generation is rare in the crypto AI sector and may be a key factor behind Grayscale’s increased allocation.
TAO Price Holds Steady as Momentum Slows
TAO is currently trading around $321, maintaining an uptrend that began in mid-March. However, price action is showing signs of consolidation just below the $330–$360 resistance zone.
Technical indicators paint a mixed picture. The Relative Strength Index (RSI) suggests bullish momentum without being overbought. Meanwhile, the MACD shows weakening strength, with a bearish crossover forming as the signal line moves ahead.
This indicates that while the broader trend remains intact, short-term momentum may be cooling.
Beyond portfolio adjustments, Grayscale has also filed with the U.S. Securities and Exchange Commission (SEC) for a Bittensor-based investment product. The proposed Grayscale Bittensor Trust would directly hold TAO and could eventually convert into an ETF listed on NYSE Arca, pending approval.
Also Read: Beyond Bitcoin: Grayscale Reveals How Investors Are Allocating Crypto — XRP Explained
Such a move would further legitimize TAO in traditional finance circles and potentially unlock new capital inflows.
Grayscale’s increased allocation to TAO signals rising institutional conviction in Bittensor’s long-term role in decentralized AI. With a growing subnet economy, real revenue generation, and potential ETF exposure on the horizon, TAO is positioning itself as a leading contender in the AI crypto narrative—though short-term price consolidation suggests the market may be taking a breather before its next move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
