Grayscale file for Ethereum Futures, Bitcoin Composite ETF
Grayscale, the asset manager behind the popular Bitcoin Trust fund, is expanding its offerings in the digital asset space by submitting registration documents for three new ETFs. The Grayscale Ethereum Futures ETF, Grayscale Global Bitcoin Composite ETF, and Grayscale Privacy ETF will provide investors with actively managed exposure to Ethereum futures contracts, track the performance of the Indxx Global Bitcoin Composite Index, and invest in privacy- and security-related digital assets, respectively. respectively.
A registration statement was filed with the US Securities and Exchange Commission in connection with the creation of the Grayscale Funds Trust, a Delaware statutory trust structure that would allow a company to independently administer its 1940 Act products. Grayscale CEO Michael Sonnenshein said in a statement that the company is laying the necessary foundations to continue creating and managing the regulated products of the future.
The move comes as Grayscale is involved in a legal battle with the SEC over its proposal to convert its flagship GBTC fund into a spot bitcoin ETF. The company expects a final decision in the court case in the fall.
While the new registration statement has been filed with the SEC, Grayscale notes that it is not yet effective. Ethereum Futures Funds and Bitcoin Composite ETFs will not invest in digital assets directly.
“The Fund seeks to achieve its investment objectives primarily through actively managed exposure to Ethereum futures contracts,” Grayscale said in the filing, referencing the Ethereum Futures fund which will “seek to buy a number of Ether Futures so that the total notional value (i.e., the total value of the underlying assets)” of the ether underlying the Ether Futures held by the Fund is approximately 100% of the Fund’s net assets.”
The Bitcoin Composite ETF will seek investment returns tracking the performance of the Indxx Global Bitcoin Composite Index. This index is designed to provide exposure to Bitcoin through a rule-based selection of major Bitcoin-related companies involved in the blockchain technology and digital asset space.
The Grayscale Privacy ETF, meanwhile, will invest in digital assets related to privacy and security. The fund’s investment objective is to seek to provide exposure to digital assets that are focused on privacy or security, or which have privacy or security features, and which may not be represented in other digital asset indexes.
Grayscale’s new ETF is expected to offer investors the opportunity to gain exposure to the digital asset space in a way that is actively regulated and managed. With the addition of the Ethereum Futures ETF, Global Bitcoin Composite ETF, and Privacy ETF to its portfolio, Grayscale is positioning itself as a major player in the digital asset investment space. As always, investors should conduct thorough due diligence and consult a financial advisor before making any investment decisions.