Europe just launched its first Bittensor (TAO) Staked ETP, offering traditional investors a regulated path to participate in this nascent decentralized AI asset. Spot trading volume is surging near $950 million as institutional interest grows for the new asset class. Even though TAO suffered a 16% drop during the broader crypto market downturn last month, larger players haven’t slowed down their interest. 2025 will be a turning point with the first Bittensor (TAO) halving approaching soon. This reduction in daily emissions from 7,200 to 3,600 per day will drastically change the landscape. While Grayscale is actively increasing its exposure through ETFs and staking preparations, everyone – including Grayscale itself – will have a much smaller pool to buy from. 40 days remain before this halving event. This scarcity triggers a significant supply shock. 2025 marks a crucial point in Bittensor’s evolution, where the network is preparing for an unprecedented market shift. As emissions are reduced from 7,200 per day to 3,600, the network will remove more than 1.3 million TAO tokens each year. This halving event will eliminate over $450 million worth of new supply instantly, as most tokens remain locked or earning subnet rewards. 2025 is a pivotal year for Bittensor because institutions like Grayscale are realizing the importance of securing their positions before demand outstrips supply. Grayscale has taken this strategy to prepare for the upcoming halving, ensuring that they have a substantial stake in the market once it tightens. Institutions, unlike retail investors, prefer assets with clear liquidity and stable supply. As Bittensor’s ecosystem continues to expand, subnet tokens are gaining traction on major exchanges, driving increased demand for TAO. AI prediction markets like Polymarket use Bittensor’s information to create accurate price predictions. As the network grows, more staking demand is locked away, creating even less availability of TAO. The market response during a halving cycle has historically seen a spike in prices, suggesting that this upcoming event will be no exception. As we move closer to the halving, Grayscale’s strategy and early investment will set the stage for unprecedented competition among miners, subnet participants, institutions, and retail investors. The window for accumulating before emissions drop is closing quickly. It remains to be seen whether institutions or individual buyers will react faster. Subscribe to our YouTube channel for daily crypto updates, market insights, and expert analysis.