Grayscale Seeks Approval from the SEC for New ETF Offerings

Digital asset management firm Grayscale has summited registration documents with the Securities and Exchange Commission to offer Grayscale Ethereum Futures ETF, Grayscale Global Bitcoin Composite ETF, and Grayscale Privacy ETF.

The registration for Grayscale’s ETF products was sent in conjunction with the formation of Grayscale Funds Trust, a Delaware statutory trust structure that will allow the firm to administer its 1940 Act products independently.

While commenting on the update, Grayscale Global Head of ETFs David LaValle remarked that the filing reflects Grayscale’s ongoing commitment to providing investors with creative methods to access the digital economy and disruptive technologies. 

Meanwhile, the company previously established Grayscale Advisors, LLC, an SEC-registered investment advisor that will serve as an investment advisor to Grayscale Funds Trust’s ETFs.

Grayscale Seeks Diversification for Investors

In the case of Grayscale’s Ethereum futures, the company is attempting to develop an Exchange Traded Product (ETP) that would track the price of Ethereum futures contracts. This would allow investors to obtain exposure to the price swings of Ethereum without having to purchase the underlying asset. 

On the other hand, a Bitcoin Composite ETF is an ETP that tracks the price movements of various cryptocurrencies, including Bitcoin. This would provide investors with exposure to a portfolio of digital assets rather than a single asset.

By filing for these ETPs, Grayscale is seeking to make it easier for investors to gain exposure to cryptocurrencies through traditional investment channels. 

Registration Still Under Approval

While the updated registration statement has been filed with the SEC, Grayscale claims it has not yet been effective. This may be due to the fact that the approval process for these products can be lengthy and there is no guarantee that they will ultimately be approved.

Notably, Grayscale submitted the documents despite a protracted legal battle with the SEC over the latter’s denial of its request to have its flagship GBTC fund converted into a spot bitcoin ETF. 

Interestingly, the business has stated that it anticipates receiving the court case’s verdict by the fall and expressed optimism after its first hearing.

Grayscale’s Legacy Crypto Products

Grayscale’s main product is the Grayscale Bitcoin Trust (GBTC), a publicly listed investment trust that primarily owns Bitcoin.

The trust allows investors to acquire exposure to Bitcoin without actually purchasing and holding the cryptocurrency. Grayscale also provides investment solutions with exposure to other cryptocurrencies such as Ethereum, Bitcoin Cash, Litecoin, and others.