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Grayscale, an asset manager specializing in cryptocurrency, submitted a proposal for a privacy-oriented exchange-traded fund (ETF) to the US Securities and Exchange Commission on Tuesday.
The Grayscale Privacy ETF aims to replicate the performance of five sub-categories, marking a first in the industry.
This includes firms involved in data protection and security, data privacy, and cybersecurity services. The fund will also encompass products that utilize blockchain technology, artificial intelligence, and edge computing solutions, as detailed in an SEC filing by David LaValle, Grayscale’s global head of ETFs.
Grayscale files for Privacy ETF…
Index-based & would track companies involved in data security & protection, cybersecurity products & services including blockchain-based technology solutions, etc.
Would also hold Grayscale Zcash Trust.
IMO, smart move for Grayscale to expand ETF lineup. pic.twitter.com/sS0cjDuh7U
— Nate Geraci (@NateGeraci) February 22, 2024
Grayscale Privacy ETF to Allocate 10% to Privacy-Preserving Protocols
Moreover, the ETF will track the performance of digital assets aimed at improving user privacy through cryptographic techniques.
As of now, this category includes Grayscale Zcash Trust (ZCSH), as indicated in the filing. It also mentioned that the index intends to allocate 10% to the sub-theme of privacy-preserving protocols.
The timeline for the SEC’s decision regarding approval remains unclear.
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Zcash is a digital asset designed to emphasize privacy and anonymity. It allows users to perform transactions without revealing sensitive information such as sender and recipient addresses or the amount transferred.
ZCSH passively invests in Zcash, according to the filing. Its goal is to provide investors with an easy way to access investment opportunities in Zcash, bypassing the complexities related to purchasing, storing, and securing Zcash directly.
Criteria for ETF Inclusion
How will companies be chosen for inclusion? The filing specified that investment products within the privacy-preserving protocol category must offer publicly traded securities in the US.
Additionally, companies considered for inclusion must be publicly traded on US, non-US developed markets, or emerging market stock exchanges. They are also required to have a market capitalization of at least $250 million and meet certain liquidity standards, as indicated in the filing.
Grayscale’s submission is noteworthy as it is one of the leading cryptoasset management firms, with approximately $27 billion in assets under management as of January 2024. It is also recognized as a pioneer in facilitating the approval of Bitcoin ETFs.
Last year, Grayscale received approval to convert its Grayscale Bitcoin Trust (GBTC) into an ETF, resulting in the creation of the largest bitcoin ETF globally. It subsequently accumulated around $23 billion in assets under management, according to the website.
The post Grayscale Files For Privacy ETF With SEC, Zcash Part of Offering appeared first on Cryptonews.
