Grayscale Investments, one of the investment firms offering cryptocurrency investment vehicles for institutions, has announced the creation of a new foundation, the Grayscale Funds Trust, which will allow the company to manage legacy products while pursuing new exchange-traded funds (ETFs). Here are the details…
New crypto money move from Grayscale
Grayscale Investments announced on May 9 that it has created a new entity called the Grayscale Funds Trust and has applied for three new crypto mutual funds. The Grayscale Funds Trust will act as a Delaware legal trust structure, allowing the firm to manage legacy products as well as pursue exchange-traded funds (ETFs). In addition to creating this new trust, Grayscale has filed registration statements for three new ETFs that are 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 also includes Grayscale’s Zcash Trust. The third fund is the Grayscale Global Bitcoin Composite ETF, which will use securities of Bitcoin mining companies alongside exchange-traded products and investment vehicles. The documents say that the fund will not invest directly in crypto assets.
Grayscale editors focus
Grayscale stressed that although it has filed regulatory filings, the above funds are not yet in effect and cannot be bought or sold before they go into effect. As we have also reported as Kriptokoin.com, Grayscale is one of the most important investment firms that offers crypto investment tools for institutions. The company’s Grayscale Bitcoin Trust (GBTC) has a market capitalization of $10.84 billion. The firm also offers a number of other cryptocurrency trusts.
However, GBTC issuances were halted after disputes with the US Securities and Exchange Commission (SEC). GBTC has been trading at a discount lately. Grayscale also struggled to obtain permission from the SEC to allow it to convert GBTC into a spot ETF. Grayscale went to court on this issue but failed to launch a crypto spot ETF despite their efforts. To date, no other firm has successfully launched a Bitcoin spot ETF.
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