Grayscale Angling for 3 New Crypto ETFs as GBTC Ruling Nears

One of the three funds proposed by the crypto asset manager would invest in companies and digital assets focused on privacy

article-image

Ascannio/Shutterstock modified by Blockworks

share

Grayscale Investments is looking to launch a trio of new funds, regulatory filings show, as the firm awaits a court ruling related to the planned conversion of its flagship product to an ETF. 

The crypto-focused asset manager is looking to bring to market an index-tracking Global Bitcoin Composite ETF that would invest in exchange-traded products that hold or are backed by physical bitcoin — plus bitcoin mining companies. 

Bloomberg Intelligence analyst Eric Balchunas called the proposed fund a “semi-spot bitcoin ETF” in a tweet.  

Grayscale is also looking to launch a fund that offers “actively-managed exposure to ethereum futures contracts,” the document shows. In the US, filing regulatory paperwork for new fund products does not necessarily indicate they’ll be approved. 

While bitcoin futures ETFs first launched in the US in October 2021, there are not yet ether futures funds in the country. 

A third proposed fund, the Grayscale Privacy ETF, would invest in companies developing blockchain-based privacy solutions. It would also look to put capital to work in digital assets “designed to ensure more private and secure transactions by obfuscating user identities and transaction details,” the filing states.

“Grayscale remains committed to scaling our business responsibly,” a spokesperson told Blockworks in an email. “Our goal is to continuously improve, streamline, and modernize our clients’ investment experience.”

Loading Tweet..

The product plans come as Grayscale waits on a court ruling related to its case against the SEC. It sued the US securities regulator last year after the SEC blocked its proposal to convert its Grayscale Bitcoin Trust (GBTC) to an ETF. 

In addition to the proposed ETFs, Grayscale on Tuesday pointed to the formation of Grayscale Funds Trust, a Delaware-domiciled “statutory trust structure” that Grayscale said in a tweet “enhances our capabilities as a global asset manager.” The fund structure is designed to include Grayscale’s ETF products if they move forward with regulatory approval.  

“The creation of Grayscale Funds Trust reflects our dedication to scaling Grayscale’s business responsibly,” Grayscale CEO Michael Sonnenshein said in a statement. “We are putting the necessary foundations in place so Grayscale can continue creating and managing regulated, future-forward products.”


Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.


Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.


Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on Google News.


Tags

upcoming event

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. This year’s event will be held in our nation’s capital, where industry leaders, policymakers, and institutional experts will come together to discuss the latest developments and challenges in the ever-evolving world of cryptocurrency. […]

upcoming event

MON - WED, SEPT. 11 - 13, 2023

2022 was a meme.Skeptics danced, believers believed.Eventually, newcomers turned away, drained of liquidity and hope.Now, the tide is shifting and it’s time to rebuild. Permissionless II is the brainchild of Blockworks and Bankless. It’s not just a conference, but a call […]

recent research

Sequencers: The Key to The Rollup Investment Thesis

Research

Sequencers are one of the most explicit mechanisms in crypto for creating sustainable DAO-controlled revenue.

/

article-image

Blockchain investigators can quickly hone in on useful data thanks to new filters

article-image

A rough start to Tuesday for Coinbase — its stock tanked during premarket hours in response to a sweeping SEC lawsuit

article-image

The SEC takes on the two biggest players in crypto within 24 hours

article-image

The SEC just sued Binance over alleged securities violations — now, the agency is coming for top US crypto exchange Coinbase

article-image

Binance’s ability to handle large outflows is once again tested as the market reckons with a fresh set of SEC allegations

article-image

Cboe Digital has CFTC permission to provide clearing services for margin trade on crypto futures at a time when regulators are closing in