Grayscale targets Worldcoin ETF with direct WLD exposure under Nasdaq filing

• Grayscale filed for a Worldcoin ETF holding WLD directly while seeking Nasdaq listing under ticker GWLD through an SEC registration.
• BitGo would custody WLD holdings while BNY Mellon manages administration and the trust remains passive without leverage or derivatives exposure.
• Filing highlighted biometric regulation risks alongside price volatility as WLD gained four percent yet remained far below its record price.

 

Grayscale has filed for a Worldcoin exchange-traded fund that would hold WLD tokens directly. According to the filling with the US Securities and Exchange Commission, the proposed investment product would trade on Nasdaq under the ticker GWLD, giving investors regulated exposure to WLD without requiring direct ownership.

The filing marks another step in Grayscale’s effort to broaden its crypto ETF offerings beyond Bitcoin and Ethereum. If approved, the trust would track the CoinDesk Worldcoin Benchmark Rate while reflecting management fees and operating expenses.

However, Grayscale has not disclosed the fund’s management fee, initial seed investment, or the amount of WLD represented by each share. The company indicated those details will appear in future amendments to the registration statement. Additionally, the ETF would issue and redeem shares in blocks of 10,000, commonly known as baskets. Authorized participants could create or redeem those baskets using WLD or cash transactions supported by liquidity providers.

Also Read: SEC Charges Florida Firm Over Alleged $22M Crypto Mining Investment Fraud

Fund structure highlights custody plan and Worldcoin exposure

BitGo Bank & Trust would serve as custodian for the ETF’s WLD holdings. Meanwhile, The Bank of New York Mellon would act as administrator and transfer agent. CSC Delaware Trust Company would oversee the trust as trustee.

Moreover, Grayscale stated that the proposed ETF would operate as a passive investment vehicle. It would not use leverage, derivatives, or active portfolio management. Instead, its sole objective would be to reflect the value of the WLD held by the trust.

According to the filing, WLD powers the World Network ecosystem, which Tools for Humanity originally developed. The company was founded by Sam Altman and Alex Blania. World Network combines World ID, World Chain, World App, and Orb devices that verify users through biometric iris scans.

The registration statement also noted that approximately 3.5 billion WLD tokens were in circulation as of June 30. Those tokens carried a combined market value of roughly $1.4 billion, while daily trading volume reached about $135.1 million. Consequently, WLD ranked as the forty-first largest cryptocurrency by market capitalization during that period.

Filing also outlines regulatory and operational risks

Grayscale identified several risks that investors should consider before investing in the proposed ETF. Notably, the filing highlighted regulatory concerns surrounding World Network’s biometric verification technology, which has faced restrictions, enforcement actions, and court decisions across multiple jurisdictions.

Additionally, the prospectus pointed to World Chain’s centralized sequencer and WLD’s price volatility as potential challenges. Grayscale also warned that regulators could classify WLD or related transactions as securities, creating additional legal uncertainty.

Such a determination could reduce the token’s value or require the trust to terminate operations. Besides that, the company acknowledged that regulatory developments remain an important factor for the proposed fund.

Conclusion

Grayscale’s Worldcoin ETF proposal adds another digital asset to the growing list of cryptocurrencies seeking regulated investment products. The filing also highlights the company’s effort to expand investor access to digital assets while addressing the operational and regulatory risks outlined in the registration statement.

Also Read: Bitcoin (BTC) Climbs Above $65K as XRP (XRP) and Ethereum (ETH) Lead Broad Crypto Market Recovery

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