Grayscale Seeks SEC Approval for Worldcoin ETF on Nasdaq

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Grayscale Seeks SEC Approval for Worldcoin ETF on Nasdaq

Highlights:

  • The Worldcoin ETF would let investors gain WLD exposure without buying or storing the token themselves.
  • Grayscale plans to list the proposed fund on Nasdaq if the SEC approves the application.
  • Worldcoin rose about 6% after the filing, although the token remains well below its record high.
Grayscale has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch a new investment fund tied to Worldcoin. The company plans to list the proposed fund on Nasdaq under the ticker GWLD if the SEC approves the registration statement. The filing expands Grayscale’s single-asset crypto ETF lineup after the company previously launched or proposed funds tied to XRP, Dogecoin, Hyperliquid, Chainlink, and Avalanche.

 

The proposed fund would let investors buy WLD exposure through traditional brokerage accounts instead of cryptocurrency exchanges. As a result, investors could gain WLD exposure without buying, storing, or managing the token themselves. Investors would also avoid creating crypto wallets, managing private keys, or opening accounts on digital asset trading platforms.

Grayscale established the Delaware statutory trust on July 10 to hold WLD as the fund’s only investment asset. The trust aims to reflect WLD’s market price, measured through the CoinDesk Worldcoin Benchmark Rate, after deducting expenses and liabilities. As a result, the fund would mirror the token’s market performance instead of trying to outperform it.

How the Worldcoin ETF Would Operate

The proposed Worldcoin ETF would operate as a passive fund that only holds WLD and follows its market performance. The trust would avoid leverage, derivatives, or any strategy that seeks returns beyond the token’s market performance. Grayscale also confirmed that the trust would not lend, stake, pledge, or use its WLD holdings as collateral for financing.

Authorized participants would create and redeem ETF shares in blocks of 10,000, known as baskets, under the proposed structure. Participants could complete those transactions through cash or in-kind transfers with support from liquidity providers. That process would allow the fund to issue and redeem shares while matching investor demand.

BitGo Bank & Trust would hold and safeguard all WLD assets that back the proposed ETF as custodian. BNY Mellon would manage administrative services and share transfers for the proposed fund as administrator and transfer agent. CSC Delaware Trust Company would oversee the trust in its role as trustee if regulators approve the fund.

Grayscale left several important details blank in the registration statement, including management fees, seed capital, and WLD per share. The company expects to add those missing terms in later amendments before the SEC completes its review.

Regulators in several countries have investigated World Network because the platform collects and processes users’ biometric data through iris scans. Meanwhile, a Kenyan court ordered the project to delete data it had collected from the country due to privacy concerns.

WLD Price Rallies After Filing

WLD has briefly rallied after Grayscale revealed the filing. The coin is currently trading at around $0.3844, up 6.97% over the past day. In addition, its trading volume is up 23.85% to $186.9 million, while the market cap stands at $1.36 billion. Analysts expect the coin to continue the rally to $0.89 as the whole market recovers.

Worldcoin Price Chart: CoinMarketCap

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