Grayscale Expands Crypto Offerings with Funds Trust and Three New ETF’s

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Key takeaways:

  • Grayscale Investments has proposed three new cryptocurrency-focused ETFs for approval.
  • The new funds would invest in crypto-related assets like Bitcoin miners and privacy-related technologies.

Grayscale Investments, a bitcoin asset management firm that also unveiled a new organization to oversee its expanding funds, has proposed three new cryptocurrency-focused exchange-traded funds (ETFs) for approval.

On May 9, Grayscale announced the opening of a new division of the company called the Grayscale Funds Trust. This division will allow Grayscale to administer several of its publicly traded financial products internally.

A registration statement for three new crypto-focused ETFs was also submitted by Grayscale with the US Securities and Exchange Commission, despite past opposition from the regulator to the creation of such ETFs. This is in addition to the new trust that Grayscale recently disclosed.

The new ETFs are the Ethereum Futures ETF, a Global Bitcoin Composite ETF, and a Privacy ETF. Investments in the Global Bitcoin Composite ETF would be made in exchange-traded products that are related to or backed by Bitcoin, such as Bitcoin mining firms. A similar indirect exposure to the potential future value of Ether would be possible with the Ethereum futures ETF thanks to shares that follow the price of ETH.

According to the filing, the Grayscale Privacy ETF would invest in businesses developing blockchain-based privacy technology. None of the three ETFs will be offered for sale to the general public until the SEC approves the registration statement pertaining to Grayscale Funds Trust.

The declaration is made while Grayscale continues to be embroiled in a legal dispute with the SEC over the conversion of its $17 billion Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.

One of the most renowned investing companies that provide institutional investors with crypto investment vehicles is Grayscale. The organization also offers many other cryptocurrency trusts, and its GBTC has a market cap of $10.84 billion. However, because of disagreements with the US Securities and Exchange Commission, GBTC redemptions were stopped in 2014. Recently, GBTC has been trading at a discount.

Grayscale has also had trouble getting the SEC’s approval so that it can transform GBTC into a spot ETF. Grayscale tried to launch a crypto spot ETF and even took the case to court, but it was unsuccessful.

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