Grayscale moves to expand ETF business as legal fight over spot bitcoin fund continues

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The crypto-focused asset manager announced a new trust and filed for three new ETFs on Tuesday.

Grayscale Investments is forging ahead in its plan to transform itself into a major ETF player even as the firm's potential flagship fund remains blocked by regulators. The crypto-focused asset manager announced on Tuesday that it has created the Grayscale Funds Trust to manage some publicly traded products, including ETFs, under its own roof as part of the rules of the 1940 Investment Companies Act. Grayscale also filed to create three new ETFs under the banner of the trust.

The case was heard by the DC Circuit Court of Appeals in March and a decision is expected later this year. Sonnenshein said that while the shift into ETFs is part of the broader corporate plan for Grayscale, the lawsuit and the creation of the new ETF trust are "separate and distinct" issues. Grayscale does ultimately plan on converting all of its digital asset trusts into U.S.-listed ETFs, he added.

 

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