Grayscale Introduces Funding Project to Manage Financial Products

  • The funding project focuses on managing the company’s publicly traded financial products.
  • The company has also filed a Registration Statement with the SEC for the approval of the ETF franchise.

Grayscale Investments, the leading investment management company, announced on May 9 the launch of the Grayscale Funds Trust, the company’s new arm focused on managing its publicly traded financial products. The funding project is a “Delaware statutory trust structure” that would allow Grayscale to independently manage its funds as the firm continues to build out its ETF franchise.

Grayscale CEO Michael Sonnenshein asserted that the company’s new move illustrates its dedication and responsibility, adding:

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

Grayscale Investments publicized its “Registration Statement” that the platform filed with the US Securities and Exchange Commission (SEC). The investment management put forward the statement for the approval of three crypto-focused exchange-traded funds, including the Ethereum Futures ETF, the Global Bitcoin Composite ETF, and a Privacy ETF.

The Ethereum Futures ETF would extract securities from Ethereum futures contracts while the Global Bitcoin Composite ETF derives the securities from BTC mining companies. The Privacy ETF would focus on tracking the Indxx Privacy Index, which includes the company’s Zcash trust.

The company’s Global Head, David LaValle shared his enthusiasm for building the ETF franchise. He quoted:

We are proud to have launched our first products in the U.S. and Europe in 2022, and today’s filing demonstrates our continued commitment to offering investors innovative ways to access the digital economy and transformative technologies using a familiar, trusted, regulated investment vehicle: the ETF.

There exists an unsettled battle between Grayscale and the SEC, rooted in the conversion of the $17 billion Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF product. As pointed out by Grayscale’s Legal Officer Craig Salm, the SEC has been partial in denying the company’s application while approving a number of Bitcoin Futures ETFs.

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