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, providing investors with exposure to the biometric identity and digital currency project co-founded by OpenAI CEO Sam Altman. Worldcoin’s orb-based iris scanning system has drawn both significant venture backing and regulatory scrutiny across multiple jurisdictions since its 2023 launch.
“Worldcoin represents a novel approach to digital identity and universal basic income infrastructure,” Grayscale said in a statement accompanying the filing. “We believe there is institutional demand for regulated exposure to this asset class.”
The trust would be structured similarly to Grayscale’s existing single-asset products, with shares representing fractional ownership of WLD tokens held in cold storage by Coinbase Custody Trust Company. The filing does not disclose a proposed ticker, expense ratio, or launch timeline, as these details typically emerge during the SEC review process.
Worldcoin’s token has traded volatile since its debut, peaking near $11.80 in March 2024 before retracing to the $2.50–$3.50 range. The project’s tokenomics—with the vast majority of supply allocated to the team, investors, and ecosystem fund—have been a persistent point of criticism among analysts.
Regulatory headwinds remain substantial. The SEC has historically rejected or delayed spot crypto ETFs beyond Bitcoin and Ether, citing concerns over market manipulation and investor protection. Kenya, Spain, Portugal, and Hong Kong have all restricted or investigated Worldcoin’s biometric data collection practices.
Grayscale’s move follows its successful conversion of the Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE) into spot ETFs in January 2024, and subsequent filings for Solana, XRP, and other single-asset products. The asset manager manages over $30 billion in crypto products.
Source: Cointelegraph
