Source: Cointelegraph | Category: Cryptocurrency
Grayscale Investments has filed an S-1 registration statement with the U.S. Securities and Exchange Commission for the Grayscale Worldcoin Trust, marking the first attempt to launch a Worldcoin (WLD) exchange-traded fund in the United States. The filing expands Grayscale’s growing lineup of crypto-related exchange-traded products beyond its flagship Bitcoin and Ether offerings.
The proposed ETF would hold Worldcoin tokens directly, with Coinbase Custody Trust Company serving as custodian and BNY Mellon as administrator. Worldcoin, the iris-scanning identity and cryptocurrency project co-founded by OpenAI CEO Sam Altman, has faced regulatory scrutiny globally since its 2023 launch over biometric data collection practices.
“This filing signals growing institutional appetite for exposure to AI-adjacent crypto assets,” said Nate Geraci, president of The ETF Store. “But Worldcoin’s regulatory overhang in Europe and Kenya makes this a higher-risk proposition than Bitcoin or Ether ETFs.”
The S-1 follows Grayscale’s recent conversions of its Bitcoin and Ethereum trusts into spot ETFs, which collectively manage over $20 billion in assets. The firm has also filed for Solana, XRP, and Avalanche ETFs in recent months, part of a broader push to securitize a wider range of digital assets.
Worldcoin’s WLD token traded around $2.15 at press time, down roughly 85% from its July 2023 peak. The project’s World ID verification system has onboarded over 6 million users globally, though several jurisdictions have ordered suspension of its iris-scanning operations pending data protection reviews.
The SEC has 240 days to approve or deny the filing, though the agency has historically been more receptive to Bitcoin and Ether products. Analysts expect the commission to scrutinize Worldcoin’s tokenomics, centralization concerns, and biometric data framework closely.
Source: Cointelegraph
