Grayscale has announced that it has established a new company called the Grayscale Funds Trust, which allows it to manage its publicly traded financial products in-house.
Making the announcement on May 9, the company announced that it has filed a filing with the United States Securities and Exchange Commission for three new crypto-focused ETFs in addition to the new trust. The new funds the company plans to issue will consist of an Ethereum Futures ETF, a Global Bitcoin Composite ETF, and a Privacy ETF.
Pending SEC Approval for ETFs
The Global Bitcoin Composite ETF will invest in Bitcoin-related or Bitcoin-backed and exchange-traded products, including Bitcoin mining firms.
Similarly, the Ethereum futures ETF will allow to participate indirectly in the future potential value of Ethereum through shares that follow the price of ETH. The filing submitted by the company to the SEC also explains that the Grayscale Privacy ETF will invest in companies working on blockchain-based privacy technology.
None of the three ETFs will be available for public purchase until the registration statement regarding the Grayscale Funds Trust is approved by the SEC.
On January 13, Grayscale argued that the SEC discriminated against crypto spot-traded exchange-traded products from futures products, and filed a lawsuit against the regulator for rejecting its application. Grayscale, in the summary he prepared against the SEC: “There is a 99.9 percent correlation between prices in the Bitcoin futures market and the spot Bitcoin market.”
While the SEC has approved a number of Bitcoin Futures ETFs that subject buyers to the potential future value of BTC, it has so far rejected every application for a spot Bitcoin investment product, citing concerns of exposing investors to potential fraud and market manipulation.
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