Bittensor (TAO) experienced a significant surge of over 23%, reaching a 10-month peak of $539, propelled by the launch of Europe’s inaugural staked TAO exchange-traded product (ETP). This milestone in the crypto sector has reignited investor enthusiasm and strengthened bullish market sentiment around TAO, marking a pivotal moment for the project.
The new ETP, introduced by Deutsche Digital Assets in collaboration with Safello, is now listed on six Swiss exchanges. This product offers European investors direct exposure to TAO tokens, which are securely held in cold storage by a regulated custodian. Investors are further incentivized by a 10% annual yield, with returns automatically reinvested, all managed under a fee cap of 1.49%. The product is designed to bridge the gap between traditional finance and decentralized AI protocols, opening the door for increased institutional capital from Europe.
Following the announcement, a notable rebound in spot market activity was observed. Within just 24 hours, TAO’s trading volume on Aicoin spiked 109% to $950 million, suggesting a robust influx of capital. Technical indicators also underlined this shift. The Relative Strength Index (RSI) climbed to 70, signaling strong buying pressure, while the Sequential Pattern Strength reached 35 — both pointing to continued market optimism.
Coinalyze data further confirmed this momentum, showing a positive Buy/Sell Delta of 41,000 TAO between October 31 and November 1. During this period, buy volume surpassed sell volume, reflecting renewed investor confidence. This spot accumulation was mirrored in the derivatives market, where open interest surged 64.8% to $446.28 million, and trading volume soared 90.63% to $2.37 billion, according to CoinGlass.
Additionally, futures market dynamics indicated a firm bullish stance. Net futures inflows rose sharply by 172.16% to $28.53 million, underscoring rising speculative interest in the asset. The Long/Short ratio reached 1.038 overall, while Binance’s top traders pushed this figure to 1.5, underscoring a strong belief in continued price growth.
However, the rally also attracted profit-takers. After TAO revisited price levels last seen in January, some investors opted to cash out. Spot Netflow decreased to $7.05 million from a previous $18.12 million, highlighting increased selling pressure. Historically, such profit-taking phases have preceded short-term corrections, especially if fresh demand doesn’t keep pace.
Should current bullish conditions persist, TAO is likely to test the next major resistance at $590. But if selling pressure intensifies, a price correction could drive it down to the $455 support level.
Beyond the short-term price action, the launch of the staked TAO ETP sets an important precedent in the integration of decentralized technologies with traditional financial instruments. It provides institutional players with a regulated, yield-generating vehicle to gain exposure to the AI-driven cryptocurrency, potentially expanding TAO’s investor base and long-term utility.
Moreover, this development can be viewed as part of a broader trend where traditional financial institutions are increasingly embracing digital assets. The ability to earn staking rewards through a compliant, professionally managed ETP lowers the technical barrier for non-crypto-native investors while enhancing TAO’s visibility in global markets.
Another factor contributing to TAO’s current momentum is the growing interest in decentralized AI platforms. As AI continues to dominate headlines and investment portfolios, protocols like Bittensor — which decentralize intelligence and incentivize useful machine learning models — are gaining traction. TAO’s tokenomics and network structure offer a unique value proposition, especially as institutional investors seek exposure to both AI and blockchain technologies.
It’s also worth noting that Bittensor’s ecosystem is entering a maturation phase. With ongoing development, ecosystem grants, and a rising number of validators and contributors, the network’s fundamentals are strengthening. This macro-level progress could support continued investor confidence and capital inflows over the medium to long term.
In conclusion, the 23% spike in TAO’s value is not merely a result of speculative hype but is underpinned by structural advancements in both product offerings and market sentiment. If the momentum continues, TAO may not only challenge new resistance levels but also cement its position as a key player at the intersection of decentralized AI and institutional finance. However, investors should remain cautious, as heightened volatility and profit-taking behavior could introduce short-term downside risks.