Grayscale Expands its Business and Includes Three Crypto Funds

To expand their business, Grayscale plans to include three crypto funds that would invest in a wide range of several crypto-related companies, including Bitcoin miners and privacy tech.

Three new crypto-focused exchange-traded firms have now been put forward to be approved by crypto asset management, Grayscale Investments, alongside the asset management’s announcement of a new entity to manage their growing funds.

During their announcement on May 9th, Grayscale said they had launched a new arm of their business, called the Grayscale Fund Trust, which will allow them to manage many of their publicly traded financial products without involving any other entities.

In addition to Grayscale’s new trust, they announced the filing of a registration statement with the United States Securities and Exchange Commission for their three new crypto-driven exchange-traded funds despite the previous roadblocks from the U.S. regulators over crypto-related Exchange-traded funds. 

The newly created funds are:

• A Global Bitcoin Composite ETF.
• A Privacy Exchange-traded fund.
• An Ethereum Futures Exchange-traded fund.

The global Bitcoin composite ETF would focus on investing in ET projects backed by or related to Bitcoin with the inclusion of Bitcoin mining firms. 

In the same context, Ethereum Futures exchange-traded funds would enable an indirect exposure to the potential future value of Ether and, equally by way of shares, track ETH’s prices. 

The report dropped by the asset management firm stated that Grayscale’s Privacy Exchange-traded funds will focus on investing in companies with work on blockchain-based privacy technology.

Grayscale’s three new ETFs will not be available for public purchase until the Securities and Exchange Commission approves the asset management’s registration statement. The announcement of the new funds comes amidst Grayscale’s ongoing conflict with the securities and exchange commission over their converting the $17 billion Grayscale Bitcoin Trust into a spot Bitcoin Exchange Traded funds service.

Earlier in the year, Grayscale sued the SEC for denying their application and argued that the Securities and Exchange Commission acted unfairly in treating crypto spot traded exchange-traded products differently compared to futures products. 

In brief, against the SEC, Grayscale stated that there is a 99% correlation between prices in the Bitcoin futures market and that of the spot Bitcoin market.

Conclusion

The Securities and Exchange Commission has previously approved several Bitcoin futures exchange-traded funds, which have exposed buyers to the potential future of Bitcoin. Still, they have continuously rejected every application for a spot Bitcoin investment product after citing concerns that it could expose investors to scams and a manipulative market. 

Grayscale has said the new funds will only go public after they receive approval from the Securities and Exchange Commission.