Bittensor (TAO) is moving through a strange phase where strong development continues while the broader AI token sector remains under pressure. The TAO price is trading near $236 after rejecting the $295–$300 zone earlier this month and drifting lower toward support.
This comes as AI sentiment weakens following comments from Google DeepMind’s chief warning about a possible AI bubble.
At the same time, Grayscale has filed for a Bittensor ETF in the U.S., a move that could reshape TAO’s long-term demand profile. The contrast between short-term price weakness and long-term expansion now defines TAO’s current setup.
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Grayscale ETF SEC Approval (Pending)
Grayscale filed an S-1 with the U.S. SEC on December 30, 2025, aiming to convert its Bittensor Trust into an exchange-traded product listed on NYSE Arca. If approved, this would become the first regulated U.S. product offering direct exposure to TAO.
This is a major structural shift for Bittensor. It would open the door for institutional capital that currently cannot access TAO directly. That kind of access often brings deeper liquidity and a different class of long-term holders.
The risk, however, is clear. A rejection or long delay from the SEC would likely cool institutional interest and keep TAO tied mainly to the crypto-native market for longer than bulls expect.
256 Subnet Expansion in 2026
A key part of Bittensor’s roadmap for 2026 is expanding the network from 128 to 256 active subnets. Each subnet acts as a specialized AI market, covering use cases such as memory, DevOps, inference, and data processing.
This matters because it directly increases the network’s economic surface. More subnets mean more opportunities to stake TAO, more competition between AI models, and potentially higher fee generation across the network.
The OpenTensor Foundation has also introduced a system where the lowest-performing subnets are replaced. This raises competition and pushes the network toward quality, not just quantity. The main risk is execution. If growth outpaces governance and validation, subnet quality could suffer in the short term.
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Enterprise and Academic Mining Integration
Bittensor is also working to bring in non-crypto-native talent. Projects like Crunch aim to simplify the process for machine learning researchers from enterprise and academia to participate as miners on the network.
This is important because it addresses the biggest problem with decentralized AI: access to real AI talent. Rather than relying solely on crypto developers, Bittensor is working with real-world scientists who build real-world AI.
This is an area with the potential to improve the quality of models running within the Bittensor subnets, which could help to strengthen the fundamental value proposition associated with being a member of the decentralized network, rather than merely an alternative token within the field of AI itself.
What this means for TAO price
Bittensor (TAO) is trading around $236 after failing to hold above the $295–$300 resistance zone earlier this month. In the short term, the market is watching the $210–$220 area as the main support band. A break below $210 would expose TAO to a deeper move toward $185.
On the upside, the TAO price would need to retake $260 to stabilize prices. Any rise over $300, on the other hand, would signal a trend shift, making way for prices to target $340 and then $380.
If ETF approval momentum builds later this year, longer-term targets extend toward $420–$450, where previous high-volume trading zones sit.
For now, the TAO price remains in a corrective phase, but the underlying network expansion suggests that any sustained return of AI sector strength could quickly refocus attention back on Bittensor.
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