Three new exchange-traded funds (ETFs) have been proposed for the approval of cryptocurrency asset manager Grayscale Investments, which has announced a new company to manage the growing funds.
On May 9, Grayscale said it launched a new division of its business – Grayscale Funds Trust – allowing it to manage a number of publicly traded financial products in-house. In addition to the new trust, Grayscale revealed that it has applied for registration with the United States Securities and Exchange Commission for three new crypto-focused ETFs, despite the previous regulator’s approach to crypto-related ETFs.
The new funds are Ethereum Futures ETF, Global Bitcoin Composite ETF and Crypto ETF.
The Global Bitcoin Composite ETF will invest in convertible products that are linked or backed by Bitcoin BTC ($27,623), including bitcoin mining companies. Similarly, the Ethereum Futures ETF will allow indirect exposure to Ether’s future value. ETH ($1,843) by behavior following the price of ETH.
The Greyscale Privacy ETF will invest in companies working on blockchain-based privacy technology, the filing explains. Until the SEC approves the registration statement regarding Grayscale Funds Trust, none of the three ETFs will be available for public purchase.
The announcement comes as Grayscale is still involved in an ongoing dispute with the SEC over the conversion of the $17 billion Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF product. On January 13, Grayscale sued the regulator for denying its request, arguing that the SEC acted unfairly by treating cryptocurrency exchange stocks differently than futures stocks. “There is a 99.9% correlation between the price and the Bitcoin futures market and the Bitcoin spot market,” Grayscale said in its filing with the SEC.
Although the SEC has approved several Bitcoin Futures ETFs – which expose investors to potential future BTC gains – it has yet to reject all applications for spot Bitcoin investment products, citing concerns about the exposure of investors can be deceived in the market.
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