Many crypto companies have great difficulty with the policies of the US Securities and Exchange Commission (SEC). The regulator is cracking down on the young industry, and according to some, not always for justifiable reasons. Grayscale is also affected, but it has now applied for three new funds.
SEC Not Happy With Crypto Spot ETFs
The SEC has so far rejected all applications for exchange traded funds (ETFs), or exchange-traded funds, based on spot or “real” bitcoin (BTC). Instead, fund providers must invest the capital in, for example, bitcoin-based futures contracts, which gives these types of ETFs only indirect exposure to the market.
Some major banks and exchanges offer bitcoin-based futures, such as the Chicago Mercantile Exchange (CME). However, a so-called ‘spot ETF’ based on the real coins is still not forthcoming.
For years, companies have been trying to get such ETFs through the SEC’s scrutiny. However, according to Bitwise CEO Matthew Hougan, it is extremely unlikely that any will be approved at all anytime soon. At least not in the US. Such funds already exist in a number of other countries. Such a bitcoin spot ETF has been trading on the Amsterdam stock exchange for almost a year.
Grayscale is applying for three new funds
Yet Grayscale does not give up. The company even recently sued the SEC over the disapproval of its bitcoin spot ETF filing. On May 9, Grayscale filed applications for three new funds: Grayscale Global Bitcoin Composite ETF, Grayscale Ethereum futures ETF, and Grayscale Privacy ETF.
The first fund invests in exchange-traded products related to bitcoin, including mining companies. The second fund is for ethereum (ETH) futures with indirect exposure to the value of ETH. The third fund is aimed at companies working on blockchain technology in combination with privacy.
NEW TODAY: We’re proud to announce the formation of Grayscale Funds Trust, a Delaware statutory trust structure that enhances our capabilities as a global asset manager.
Investors want and deserve access to future-forward investment opportunities, and Grayscale Funds Trust will… pic.twitter.com/qEeqwWHNSe— Grayscale (@Grayscale) May 9, 2023