Safello, Deutsche Bank-Backed DDA Launch Bittensor (TAO) ETP on SIX Swiss Exchange

Executive Summary

Nordic cryptocurrency exchange Safello, in collaboration with Deutsche Digital Assets (DDA), a firm backed by Deutsche Bank, is set to launch the first Bittensor (TAO) Exchange Traded Product (ETP) on the SIX Swiss Exchange, aiming to increase regulated access to the cryptocurrency.

The Event in Detail

Safello, a prominent cryptocurrency exchange in the Nordics, has announced the issuance of its physically backed, staked TAO ETP. This product is developed in partnership with Deutsche Digital Assets, an entity supported by Germany's Deutsche Bank. The ETP, named Safello Bittensor Staked TAO ETP, is issued by DDA ETP AG. Its listing on the SIX Swiss Exchange is scheduled for November 19 under the ticker STAO, carrying a management fee of 1.49%. The ETP is designed to offer investors exposure to Bittensor, a network positioned at the intersection of blockchain and artificial intelligence, as stated by Emelie Moritz, CEO at Safello.

Financial Mechanics and Product Structure

The Safello Bittensor Staked TAO ETP is physically backed, meaning it holds actual TAO tokens. These tokens are maintained in cold storage with a regulated crypto custodian, emphasizing security and compliance. A key feature of the ETP is its staking rewards mechanism: investors are slated to receive the full TAO staking rewards, net of service provider fees, which are automatically reinvested into the ETP. This reinvestment directly impacts and is reflected in the product's net asset value (NAV). The ETP is structured to track the Kaiko Safello Staked Bittensor Index (KSSTAO Index), providing a transparent and secure avenue for both retail and institutional investors to gain regulated exposure to the Bittensor network and participate in its staking economy through a traditional exchange-traded framework.

Business Strategy and Market Positioning

Safello's entry into the ETP market through this collaboration with DDA represents a strategic expansion beyond its core cryptocurrency exchange operations. For Deutsche Digital Assets, the launch aligns with its stated strategy to establish itself as an independent crypto ETP issuer and a white-label partner. This approach enables DDA to facilitate other partners in bringing innovative crypto investment strategies to market while adhering to regulatory standards. The selection of Bittensor (TAO) for this inaugural ETP is notable, capitalizing on its unique positioning at the confluence of blockchain and AI, a sector attracting increasing investor interest. This development is consistent with a broader trend in the financial markets, where crypto ETP filings are accelerating globally. As of October 21, 2025, there were 155 crypto ETP filings tracking 35 different digital assets, a number Bloomberg ETF analyst Eric Balchunas anticipates could exceed 200 within the next 12 months.

Broader Market Implications

The introduction of the Safello Bittensor Staked TAO ETP is poised to significantly impact the accessibility and adoption of Bittensor and, by extension, the broader cryptocurrency market. By offering a regulated and traditional financial product for TAO, the ETP can attract a wider base of investors, including institutions, who prioritize compliant investment vehicles. This increased accessibility could further legitimize cryptocurrency investments within established financial paradigms. The move also underscores the growing intersection of traditional finance and digital assets. Deutsche Bank's recent strong performance in fixed-income trading, which surpassed analyst expectations, signals robust activity in traditional financial markets that can have ripple effects on cryptocurrency trading strategies. Historically, positive bank earnings correlate with an increased appetite for alternative investments, potentially driving higher trading volumes in digital assets. Bittensor itself has already demonstrated significant capital inflow, with its trading volume nearly tripling from $2.3 billion to $7.03 billion in October 2025. This ETP launch contributes to the maturation of the Web3 ecosystem by bridging traditional investment structures with decentralized technologies, further integrating digital assets into the global financial landscape.