Leading digital asset manager Grayscale Investments, has announced the formation of a new entity, Grayscale Funds Trust, and applied for approval for three new crypto exchange-traded funds (ETFs).
The new EFTs would invest in several different crypto-related assets including Bitcoin miners and privacy technology. Those funds include Bitcoin ETFs, Ethereum futures, and Zcash.
Grayscale Puts Forward 3 New Crypto Funds
On May 9, Grayscale announced that it was launching a new business entity – Grayscale Funds Trust, a Delaware statutory trust structure that will allow it to independently manage many of its publicly traded financial products in-house “as the firm continues to build out its ETF.
NEW TODAY: We’re proud to announce the formation of Grayscale Funds Trust, a Delaware statutory trust structure that enhances our capabilities as a global asset manager.
Investors want and deserve access to future-forward investment opportunities, and Grayscale Funds Trust will… pic.twitter.com/qEeqwWHNSe
— Grayscale (@Grayscale) May 9, 2023
Grayscale CEO Michael Sonnenshein said that the creation of the Grayscale Funds Trust attests to the dedication of the investment company to continue to responsibly create and manage regulated products focused on the future.
The creation of Grayscale Funds Trust reflects our dedication to scaling Grayscale’s business responsibly. We are putting the necessary foundations in place so Grayscale can continue creating and managing regulated, future-forward products.
According to the announcement, the firm also filed a “registration statement relating to Grayscale Funds Trust” with the U.S. Securities and Exchange Commission (SEC) to expand offerings with three new crypto-ETFs.
This filing has been done despite previous barriers from the SEC over crypto-related ETFs. The three funds include a Global Bitcoin Composite ETF, an Ethereum ETF, and a privacy ETF.
The Global Bitcoin Composite ETF would invest in exchange-traded products and investment vehicles that are related to or backed by Bitcoin, including Bitcoin mining firms, according to the filing.
The Ethereum futures ETF will drive value from indirect exposure to the Ethereum futures contracts by way of shares that track ETH’s price.
Finally, the Privacy ETF will track the Privacy Index, which itself includes Grayscale’s Zcash Trust. It would invest in companies working on blockchain-based privacy technology.
The crypto-asset investment management firm previously formed Grayscale Advisors, LLC, a SEC-registered investment advisor, which will serve as investment advisor to the ETFs issued by Grayscale Funds Trust.
According to Grayscale Global Head of ETFs, David LaValle, the company is excited to build its ETF franchise which involved “hiring a dedicated team, expanding our partnerships, and enhancing our position within the ETF ecosystem.
We are proud to have launched our first products in the U.S. and Europe in 2022, and today’s filing demonstrates our continued commitment to offering investors innovative ways to access the digital economy and transformative technologies using a familiar, trusted, regulated investment vehicle: the ETF.
Grayscale emphasized that none of the three ETFs will be available for public purchase until the registration statement relating to Grayscale Funds Trust is approved by the SEC.
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