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<p>Cryptocurrency asset manager Grayscale Investments announced the launch of The Grayscale Funds Trust.</p>
<p>The new entity will allow the firm to manage many of its publicly traded financial products in-house.</p>
<h2 id="bullish-on-crypto-s-future">Bullish on Crypto’s Future</h2>
<p>In addition, Grayscale has filed a registration statement with the United States Securities and Exchange Commission (SEC) for three new crypto-focused exchange-traded funds (ETFs). These are an Ethereum Futures ETF, a Global Bitcoin Composite ETF, and a Privacy ETF.</p>
<p>Grayscale&#8217;s move to file registration statements for three new crypto-focused ETFs suggests that the firm is still bullish on the future of cryptocurrency investment products.</p>
<blockquote><p>“Investors want and deserve access to future-forward investment opportunities, and Grayscale Funds Trust will allow us to expand our offerings as we build our ETF franchise under @Dave_LaValle,” Grayscale said in its <a href="https://twitter.com/Grayscale/status/1656042617660948486?s=20" data-wpel-link="external" target="_blank">statement</a> on Twitter.</p></blockquote>
<h2 id="etf-expansion-plans">ETF Expansion Plans</h2>
<p>The Global Bitcoin Composite ETF would invest in exchange-traded products related to or backed by Bitcoin while the Ethereum futures ETF would provide indirect exposure to the potential future value of Ether through shares that track ETH&#8217;s price, the company <a href="https://www.globenewswire.com/news-release/2023/05/09/2665053/0/en/Grayscale-Investments-Forms-Grayscale-Funds-Trust.html?mkt_tok=MDAwLUVVRS0xMjUAAAGLoVhSh-fMc9RqYFmSjyP7mG1W69sTTLLQnEE_SuST4freaw_JwWJW8Uqo8c9_IlyjKCTl52DeivezXhwXyCF-AJkufXxfrZrvVJxpx_s" data-wpel-link="external" target="_blank">said</a> in a PR.</p>
<p>The Grayscale Privacy ETF, on the other hand, would invest in companies working on blockchain-based privacy technology. However, until the SEC approves the registration statement, none of the three ETFs will be available for public purchase.</p>
<p>The announcement by Grayscale comes as the firm is still embroiled in an <a href="https://cryptopotato.com/heres-everything-you-need-to-know-about-the-latest-grayscale-sec-developments/" data-wpel-link="internal">ongoing conflict</a> with the SEC over converting its $17 billion Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF product.</p>
<h2 id="tussle-over-spot-bitcoin-etf">Tussle Over Spot Bitcoin ETF</h2>
<p>While the SEC has approved several Bitcoin Futures ETFs, it has so far rejected every application for a spot Bitcoin investment product, citing concerns about exposing investors to potential fraud and market manipulation.</p>
<p>Grayscale sued the regulator on January 13 for denying its application, arguing that the SEC acted indiscriminately in treating crypto spot traded exchange-traded products differently from futures products. Grayscale <a href="https://grayscale.com/wp-content/uploads/2022/12/Reply-Brief-of-Respondent-SEC-12092022.pdf" data-wpel-link="external" target="_blank">stated </a>in its brief against the SEC that there is a 99.9% correlation between prices in the Bitcoin futures market and the spot BTC market.</p>
<p>Amid the broader market downturn, Grayscale’s flagship product Grayscale Bitcoin Trust (GBTC), which tracks BTC prices, hit a record <a href="https://cryptopotato.com/gbtc-discount-narrows-by-over-42-as-grayscale-sec-face-off-inches-closer/" data-wpel-link="internal">discount</a> of 47.35% to net asset value on February 13. Recently, FTX <a href="https://cryptopotato.com/ftx-sues-grayscale-to-unlock-9-billion-from-bitcoin-and-ethereum-trusts/" data-wpel-link="internal">sued</a> Grayscale for refusing Bitcoin and Ethereum redemptions.</p>
<p>The post <a href="https://cryptopotato.com/grayscale-launches-new-entity-to-manage-funds-eyes-expansion-of-etf-offerings/" rel="nofollow">Grayscale Launches New Entity to Manage Funds, Eyes Expansion of ETF Offerings</a> appeared first on <a href="https://cryptopotato.com/" rel="nofollow">CryptoPotato</a>.</p>

Grayscale Launches New Entity to Manage Funds, Eyes Expansion of ETF Offerings

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