On December 30, 2025, a piece of news shook the cryptosphere: Grayscale, the crypto investment giant, filed an application with the SEC to convert its Grayscale Bittensor Trust into a spot Exchange-Traded Fund (ETF) listed in the United States [1]. This announcement marks a major turning point, not only for the Bittensor (TAO) project, but also for the entire decentralized artificial intelligence (AI) sector. It's the meeting of two worlds: the power of decentralized AI and the legitimacy of traditional finance. But what does this news really mean for the individual investor, and particularly for the Crypto P2P Club community, which is concerned with ethics and sovereignty?
Act 1: Bittensor, the "Bitcoin of AI"
To understand the importance of this ETF, you first need to understand what Bittensor is. Imagine a global marketplace where anyone can "rent" or "sell" artificial intelligence. That, in essence, is the promise of Bittensor. Unlike centralized giants like Google, Amazon, or Microsoft that control the AI infrastructure, Bittensor offers a decentralized network where thousands of participants around the world collaborate to train AI models and process data. In exchange for their contribution, they are rewarded with TAO tokens.
The network operates through "subnets," specialized sub-networks for specific AI tasks (natural language processing, image generation, etc.). This modular architecture has enabled an explosion of innovation since the "Dynamic TAO" upgrade in February 2025, which made these subnets directly investable [1].
Furthermore, the TAO token is designed on a scarcity model similar to that of Bitcoin. On December 14, 2025, the network underwent its first "halving," cutting daily TAO rewards in half. This mechanism, combined with growing demand, is designed to create upward pressure on the token's price, a strong argument for institutional investors.
Act 2: Grayscale, the Institutional Gatekeeper
Grayscale is a well-known name in the crypto ecosystem. By transforming digital assets into traditional financial products, Grayscale has opened the doors of crypto to billions of dollars in institutional investment. Their Bitcoin ETF was a resounding success, and they now hope to replicate that success with Bittensor.
By offering a spot ETF for TAO, Grayscale provides a simple and regulated solution to gain exposure to decentralized AI, without having to worry about the technical complexity of buying and holding tokens. The presence of renowned partners like Coinbase and BitGo as custodians further strengthens the credibility of the offering [1].
Act 3: The Question of Shariah Compliance
For the Crypto P2P Club community, a crucial question arises: is the TAO token halal? To answer this, we turned to Sharlife, a Shariah advisory firm registered with the Securities Commission of Malaysia. Their analysis, although requiring a subscription for a full report, gives us valuable insights [2].
| Risk | Level | Implication |
|---|---|---|
| Shariah Risk | Moderate | The project has gray areas that require in-depth analysis. |
| Legitimacy Risk | Moderate | The project is considered legitimate, but with some reservations. |
| People Risk | Insufficient Data | The team and governance could not be fully assessed. |
The "Moderate" Shariah risk suggests that the project is not clearly haram, but it is also not free from doubt. The staking mechanism, which rewards token holders, could be assimilated to riba (interest), although many scholars consider it a reward for securing the network. The "Yuma" consensus, specific to Bittensor, would also deserve a thorough analysis.
Comparison: Sahal Wallet, the Ethical Approach
Faced with this uncertainty, the approach of Sahal Wallet makes perfect sense. Sahal Wallet is a crypto wallet that integrates a Shariah filter, allowing users to instantly know if a token is considered halal or not. Currently, the TAO token is not listed on Sahal Wallet but has been scanned in their Halal Screener as "compliant". This means that it is considered as halal, after passing the rigorous verification process of MRHB shariah board's team.
This highlights a fundamental difference in approach:
- Grayscale focuses on accessibility and regulatory compliance for institutions.
- Sahal Wallet focuses on clarity and ethical compliance for individuals.
Conclusion: Two Worlds, One Quest for Sovereignty
The arrival of Grayscale's Bittensor ETF is excellent news for the crypto ecosystem. It validates the relevance of decentralized AI and builds a solid bridge to traditional finance. However, for the Muslim investor, caution remains necessary. The absence of a clear Shariah certification and the complexity of the project call for patience.
This is where the philosophy of the Crypto P2P Club comes into its own:
- Learn: Take the time to understand what Bittensor is, how it works, and the associated risks.
- Hold: Only make an investment decision once you are convinced that the project is aligned with your values and your strategy.
- Share: Educate those around you on the nuances of crypto investment, reminding them that regulatory compliance does not equal ethical compliance.
Ultimately, whether through an institutional ETF or an ethical wallet, the quest remains the same: that of digital sovereignty, in accordance with one's principles.
References
[1] AInvest. "Grayscale's Bittensor (TAO) ETF: A Gateway to the Decentralized AI Revolution". Accessed January 1, 2026. https://www.ainvest.com/news/grayscale-bittensor-tao-etf-gateway-decentralized-ai-revolution-2512/
[2] Sharlife. "Bittensor Shariah Status | Is Bittensor Halal for Islamic Investment?". Accessed January 1, 2026. https://sharlife.my/crypto-shariah/crypto/TAO