USDBitwise and Grayscale Accelerate Altcoin ETF Push as SEC Filings Target DeFi, Layer-1s, and Decentralized AI
Strategy-Based Altcoin ETFs and a First-Ever Bittensor Spot Filing Signal a New Phase of Institutional Crypto Access
TL;DR
- Bitwise filed 11 single-asset crypto strategy ETF applications on Dec. 30, 2025, spanning DeFi, Layer-1s, Layer-2s, privacy networks, and decentralized AI.
- Grayscale followed with a filing to convert its Bittensor trust into the first U.S. spot TAO ETF after the network’s halving reduced daily issuance.
- The filings reflect growing regulatory clarity and rising institutional demand beyond Bitcoin and Ethereum, reshaping how crypto price exposure reaches public markets.
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Bitwise Asset Management moved aggressively at the end of 2025, submitting 11 new single-token crypto strategy ETF filings to the U.S. Securities and Exchange Commission on Dec. 30 in one of the largest coordinated altcoin ETF pushes seen so far. The proposed funds target a wide range of blockchain sectors, including decentralized finance, Layer-1 and Layer-2 networks, privacy-focused protocols, synthetic asset platforms, and decentralized artificial intelligence infrastructure. Each filing outlines a rules-based “strategy” structure rather than a pure spot product, with up to 60% of assets allocated directly to the underlying cryptocurrency and at least 40% invested through securities tied to exchange-traded products offering exposure to the same token. Derivatives may also be used to fine-tune exposure and manage tracking efficiency.
The assets named across the 11 filings include Aave, Uniswap, Zcash, Canton Network’s CC token, Ethena, Hyperliquid, NEAR Protocol, Starknet, Sui, Bittensor, and Tron. Together, the list spans lending, decentralized exchanges, zero-knowledge privacy, interoperable blockchain infrastructure, synthetic dollars, high-performance trading networks, sharded architectures, ZK rollups, Move-based smart contract platforms, decentralized AI marketplaces, and established Layer-1 ecosystems. Market participants viewed the breadth of the selection as a signal that Bitwise is positioning itself to capture investor demand for targeted exposure beyond Bitcoin and Ethereum, particularly as crypto price dynamics and coin market cap rankings increasingly reflect sector-specific narratives rather than a single-asset cycle.
The filings arrive under a faster regulatory regime following the SEC’s October 2025 adoption of generic listing standards for crypto ETFs, which reduced the need for individualized approvals and shortened review timelines. Under those rules, the Bitwise products could become effective roughly 75 days after filing and trade on NYSE Arca, pointing to potential launches around mid-March 2026 if no objections arise. Bitwise already operates multiple spot and thematic crypto ETFs, and the new single-asset strategy products are designed to sit alongside those offerings, giving traditional investors regulated access to tokens that have historically been reachable only through exchanges or on-chain platforms. Analysts noted that this approach could further integrate altcoins into mainstream portfolio construction, where crypto price index performance is increasingly monitored alongside equities and commodities.
Grayscale Investments added to the momentum the same day by filing an S-1 registration statement to convert its Grayscale Bittensor Trust into a spot ETF expected to trade on NYSE Arca under the ticker GTAO. The filing would make it the first U.S. spot ETF offering direct exposure to TAO, the native token of the Bittensor network, which focuses on decentralized machine learning and AI model marketplaces. Timing played a central role in the move, as Bittensor completed its first halving event in mid-December 2025, cutting daily token issuance to 3,600 TAO and reinforcing a scarcity narrative reminiscent of Bitcoin’s supply mechanics.
TAO’s maximum supply is capped at 21 million tokens, and market reaction around the filing reflected renewed interest in decentralized AI as an investable theme. Prices recovered toward the $220 level during the period, erasing short-term losses and highlighting how regulatory developments can influence crypto price behavior even in niche sectors. Grayscale’s filing details a structure using both cash and in-kind creation and redemption mechanisms, with Coinbase serving as prime broker and institutional custodians handling asset storage. Staking is not currently included, with any future implementation subject to regulatory and tax considerations.
This article has been refined and enhanced by ChatGPT.
