Crypto asset manager Grayscale has filed with the United States Securities and Exchange Commission (SEC) to launch a Worldcoin exchange-traded fund (ETF). The ETF will list on Nasdaq under the ticker GWLD.
The WLD token registered a substantial increase following the filing, rising 4.5% to break above a descending channel on the four-hour chart.
Details Of The Filing
Grayscale filed an S-1 registration statement for the Worldcoin ETF on Monday, offering investors exposure to the WLD token. BitGo Bank & Trust will be responsible for custodying the WLD token, while BNY Mellon will act as the administrator and transfer agent, and the CSC Delaware Trust Company will be a trustee. However, the filing does not disclose liquidity providers, management fees, seed investment, or authorized participants. If approved, GWLD will hold the WLD token as its principal asset. The filing states that the trust will only hold the WLD token and process share creations and redemptions.
ETF Structure
GWLD will allow the creation or redemption of shares in blocks of 10,000. The transactions can be completed by delivering WLD tokens or cash orders using liquidity providers. According to Grayscale, the fund allows holders to gain exposure to WLD through traditional brokerage accounts, helping investors skip complexities like crypto wallets, private keys, and trading on an exchange.
However, it is unclear if the SEC will approve Grayscale’s filing or whether Nasdaq will list its shares, and Grayscale may be required to submit more amendments to secure regulatory approval.
Regulatory Pushback Against Worldcoin
Grayscale’s filing acknowledges regulatory pushback against Worldcoin, which has faced scrutiny in several jurisdictions including Spain, Portugal, Germany, Hong Kong, Brazil, Kenya, and Indonesia. WLD is the native token of the World Network, a company founded by Sam Altman and Alex Blania. The network includes several projects, including World ID, World App, World Chain, and Orb.
The crypto asset manager noted that World Network’s biometric data collection could be a product risk. It also highlighted other risks, including WLD volatility, World Chain’s centralized sequencer, and possible securities-law treatment.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
