Grayscale Investments has filed an S-1 registration statement with the U.S. Securities and Exchange Commission for a spot Worldcoin (WLD) exchange-traded fund, Cointelegraph reported Tuesday. The filing marks the asset manager’s first foray into a Worldcoin-linked product and extends its growing suite of crypto-related ETFs beyond Bitcoin and Ether.
The proposed Grayscale Worldcoin Trust would hold WLD tokens directly, offering investors exposure to the biometric identity project co-founded by Sam Altman. Worldcoin’s Orb-based iris-scanning system aims to create a global proof-of-personhood network, with the WLD token serving as both a governance and utility asset within the ecosystem. The project has drawn both significant venture backing and regulatory scrutiny across multiple jurisdictions.
Grayscale’s move signals growing institutional appetite for crypto assets outside the two largest by market cap. The firm already manages the Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and a suite of single-asset trusts covering Solana, Avalanche, and other Layer 1 tokens. An ETF wrapper would provide greater liquidity and tax efficiency compared to the trust structure, which has historically traded at significant premiums or discounts to net asset value.
The filing comes as the SEC’s stance on crypto ETFs has evolved. Following the approval of spot Bitcoin and Ether ETFs earlier this year, the regulator has engaged more constructively with issuers on additional digital asset products. However, Worldcoin’s unique architecture — combining biometric data collection with token incentives — may invite additional questions around data privacy, token classification, and market manipulation risks.
Worldcoin’s tokenomics have also been a point of contention. A low float and high fully diluted valuation have led some analysts to warn of potential price volatility if insider unlocks coincide with weak demand. Grayscale’s S-1 does not specify a launch timeline; the fund would require SEC effectiveness and exchange listing approval before trading can commence.
If approved, the Worldcoin ETF would be the first U.S.-listed fund offering direct exposure to a biometric identity token. Competitors including Bitwise and VanEck have filed for similar single-asset crypto ETFs in recent months, suggesting a pipeline of novel digital asset products awaiting regulatory clearance.
Source: Cointelegraph
