Grayscale Investments announced on May 9 that it has formed a new entity called Grayscale Funds Trust and has applied for three new crypto investment funds.
Grayscale is introducing three new ETFs
The Grayscale Funds Trust will act as a legal trust structure in Delaware that will allow the company to manage its legacy products while pursuing exchange-traded funds (ETFs).
In addition to building that new confidence, Grayscale has filed registration statements for three new ETFs directly or indirectly related to cryptocurrency.
The first is the Grayscale Ethereum Futures ETF, which will derive value from exposure to Ethereum futures contracts. The second is the Grayscale Privacy ETF; this fund will track the Indxx Privacy Index, which itself includes Grayscale’s Zcash Trust.
The third fund is the Grayscale Global Bitcoin Composite ETF, which will use exchange-traded products and investment vehicles, as well as securities from Bitcoin mining companies. The fund will not invest directly in digital assets, the filing said.
Grayscale emphasized that while it has filed regulatory filings, the aforementioned funds are not yet in effect and cannot be bought or sold before they go into effect.
Grayscale continues to pursue spot ETF
Grayscale is one of the most notable investment companies offering crypto investment vehicles for institutions. The company’s Grayscale Bitcoin Trust (GBTC) has a market cap of $10.84 billion and the company also offers numerous other cryptocurrency trusts.
However, GBTC redemptions were halted in 2014 after conflicts with the US Securities and Exchange Commission (SEC). GBTC recently traded at a discount.
Grayscale has also struggled to get approval from the SEC to convert GBTC into a spot ETF. Grayscale has taken the case to court, but has been unable to launch a cryptocurrency ETF despite its best efforts.
No other company has successfully launched a Bitcoin spot ETF to date.
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