Grayscale Angling for 3 New Crypto ETFs as GBTC Ruling Nears

Grayscale Investments is looking to launch a trio of new funds, regulatory filings show, as the firm awaits a court ruling related to the planned conversion of its flagship product to an ETF. 

The crypto-focused asset manager is looking to bring to market an index-tracking Global Bitcoin Composite ETF that would invest in exchange-traded products that hold or are backed by physical bitcoin — plus bitcoin mining companies. 

Bloomberg Intelligence analyst Eric Balchunas called the proposed fund a “semi-spot bitcoin ETF” in a tweet.  

Grayscale is also looking to launch a fund that offers “actively-managed exposure to ethereum futures contracts,” the document shows. In the US, filing regulatory paperwork for new fund products does not necessarily indicate they’ll be approved. 

While bitcoin futures ETFs first launched in the US in October 2021, there are not yet ether futures funds in the country. 

A third proposed fund, the Grayscale Privacy ETF, would invest in companies developing blockchain-based privacy solutions. It would also look to put capital to work in digital assets “designed to ensure more private and secure transactions by obfuscating user identities and transaction details,” the filing states.

“Grayscale remains committed to scaling our business responsibly,” a spokesperson told Blockworks in an email. “Our goal is to continuously improve, streamline, and modernize our clients’ investment experience.”

The product plans come as Grayscale waits on a court ruling related to its case against the SEC. It sued the US securities regulator last year after the SEC blocked its proposal to convert its Grayscale Bitcoin Trust (GBTC) to an ETF. 

In addition to the proposed ETFs, Grayscale on Tuesday pointed to the formation of Grayscale Funds Trust, a Delaware-domiciled “statutory trust structure” that Grayscale said in a tweet “enhances our capabilities as a global asset manager.” The fund structure is designed to include Grayscale’s ETF products if they move forward with regulatory approval.  

“The creation of Grayscale Funds Trust reflects our dedication to scaling Grayscale’s business responsibly,” Grayscale CEO Michael Sonnenshein said in a statement. “We are putting the necessary foundations in place so Grayscale can continue creating and managing regulated, future-forward products.”

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