Grayscale Files for Ethereum Futures, Bitcoin Composite ETFs

Grayscale, the asset manager behind the popular Bitcoin Trust fund, is expanding its offerings in the digital asset space with the filing of 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 digital assets related to privacy and security, respectively.

The registration statement was filed with the U.S. Securities and Exchange Commission in conjunction with the creation of Grayscale Funds Trust, a Delaware statutory trust structure that will allow the firm to independently manage its 1940 Act products. Grayscale CEO Michael Sonnenshein said in a statement that the company is putting the necessary foundations in place to continue creating and managing regulated, future-forward products.

The move comes as Grayscale is embroiled in a legal dispute with the SEC over its proposal to convert its flagship GBTC fund into a spot bitcoin ETF. The company is expecting a final ruling in the court case by the fall.

While the new registration statement has been filed with the SEC, Grayscale noted that it has not yet become effective. The Ethereum Futures fund and the Bitcoin Composite ETFs will not invest in digital assets directly.

“The Fund seeks to achieve its investment objective primarily through actively-managed exposure to Ethereum futures contracts,” Grayscale said in the filing, referencing the Ethereum Futures fund that will “seek to purchase a number of Ether Futures so that the total notional value (i.e., the total value of an underlying asset) of the ether underlying the Ether Futures held by the Fund is approximately 100% of the net assets of the Fund.”

The Bitcoin Composite ETF will seek investment results that track the performance of the Indxx Global Bitcoin Composite Index. The index is designed to provide exposure to Bitcoin through a rules-based selection of large-cap Bitcoin-related companies that are involved in blockchain technology and the 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 focus on privacy or security, or that have privacy or security features, and that may not be represented in other digital asset indices.

Grayscale’s new ETFs are expected to offer investors an opportunity to gain exposure to the digital asset space in a regulated, actively-managed manner. 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 with a financial advisor before making any investment decisions.