Grayscale Investments, a cryptocurrency asset manager, has proposed three new crypto-focused exchange-traded funds (ETFs) for approval. The company has also unveiled a new entity, the Grayscale Funds Trust, to manage its growing funds. Despite previous challenges from the regulator over crypto-related ETFs, Grayscale has filed a registration statement with the United States Securities and Exchange Commission for an Ethereum Futures ETF, a Global Bitcoin Composite ETF, and a Privacy ETF. Until the registration statement for Grayscale Funds Trust is approved by the SEC, none of the three ETFs will be available for public purchase.
Grayscale is currently in conflict with the SEC over converting its $17 billion Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF product. The company sued the regulator for denying its application, arguing that the SEC acted indiscriminately in treating crypto spot traded exchange-traded products differently from futures products.
Despite the SEC approving a number of Bitcoin Futures ETFs, which expose buyers to the potential future value of BTC, it has rejected every application for a spot Bitcoin investment product, citing concerns about exposing investors to potential fraud and market manipulation.
