Grayscale Pursues Worldcoin ETF Amid Token's Plunge

Grayscale is pushing forward with plans to launch a Worldcoin ETF (exchange-traded fund), despite the token's steep decline in value. The asset manager submitted its application to the SEC on July 20, after creating the corresponding trust on July 10.

The proposed GWLD ETF will trade on the Nasdaq exchange and track the price of the Worldcoin token. Grayscale has chosen BitGo as custodian for the WLD tokens and BNY Mellon for accounting administration. However, the application does not include details on management fees or trading execution partners.

Grayscale's move is part of its strategy to offer institutional investors access to cryptocurrencies through a more traditional investment vehicle. The company previously converted its Bitcoin trust into a spot ETF in January 2024 and has filed applications for other products, such as Solana- and Dogecoin-linked funds.

The Worldcoin token itself has seen significant volatility, with its price hovering around $0.375 - approximately 97% below its all-time high of $11.74 reached in March 2024. Regulatory challenges also loom large for the project, as several countries have implemented measures or restrictions against it.