Grayscale Investments, a cryptocurrency asset manager, has proposed three new crypto-focused exchange-traded funds (ETFs) for approval.
The investment firm also announced the establishment of a new entity, the Grayscale Funds Trust, to manage many of its publicly traded financial products in-house.
The three new ETFs are an Ethereum Futures ETF, a Global Bitcoin Composite ETF, and a Privacy ETF. The Global Bitcoin Composite ETF will invest in exchange-traded products related to or backed by Bitcoin, including Bitcoin mining companies.
The Ethereum Futures ETF, on the other hand, will provide indirect exposure to the potential future value of Ether through shares that track its price. The Grayscale Privacy ETF will invest in companies working on blockchain-based privacy technology.
None of the three ETFs will be available for public purchase until the registration statement relating to the Grayscale Funds Trust is approved by the United States Securities and Exchange Commission (SEC).
This announcement comes as Grayscale is currently in conflict with the SEC over converting its $17 billion Grayscale Bitcoin Trust into a spot Bitcoin ETF product. Grayscale sued the regulator for denying its application on Jan. 13, arguing that the SEC treated crypto spot traded exchange-traded products differently from futures products.
The SEC has approved several Bitcoin Futures ETFs, but it has thus far rejected every application for a spot Bitcoin investment product due to concerns about exposing investors to potential fraud and market manipulation.
