News

Investment firm Grayscale has filed with the U.S. Securities and Exchange Commission (SEC) to create a new exchange-traded fund (ETF). This fund will track the WLD token, the native cryptocurrency of the biometric project World Network (formerly Worldcoin). If approved by the SEC, the ETF, with the ticker symbol GWLD, will be listed on the Nasdaq exchange, opening a new way for investors to interact with this asset.

The fund's main idea is to provide both institutional and retail investors with exposure to WLD price fluctuations while avoiding direct interaction with cryptocurrency exchanges. Clients won't have to worry about setting up wallets, managing private keys, or securely storing their cryptocurrency. The fund will track the price of WLD using the CoinDesk Worldcoin Benchmark Rate. Importantly, the fund's structure will not use leverage or complex derivatives, which is intended to mitigate risks.

To support the fund's operations, Grayscale has secured a number of reputable financial players. BitGo Bank & Trust, a company specializing in digital assets, will handle custody of WLD tokens. BNY Mellon, a bank with a rich history in traditional financial markets, has been appointed registrar and administrator. CSC Delaware Trust Company will act as trustee. Grayscale is thus building an ETF-like infrastructure tailored to the specifics of crypto assets, focusing on token custody, issuance, and redemption of units.

The process of creating and redeeming fund shares involves working with "baskets"—blocks of 10,000 securities. Investors will be able to participate in these transactions by offering either WLD tokens themselves or fiat currency. The latter option will be implemented through third-party liquidity providers. This approach provides flexibility, making the fund accessible to both large WLD holders seeking to structure their assets as an ETF and investors without cryptocurrency holdings.

However, some details of the application have not yet been disclosed. Grayscale has not specified the initial investment amount, the WLD token-per-share ratio, or the annual management fee. The company plans to update the documentation at later stages of review, as is standard practice for such initial applications, whereby approval in principle is sought first and specific details are agreed upon later.

The WLD token is part of the World Network ecosystem, developed by Tools for Humanity, founded by Sam Altman and Alex Blania. The project includes the World ID digital identification system, the World App mobile app, the scalable second-layer World Chain network, and the Orb iris scanning devices. The WLD token serves as a means of access and proof of rights in this system.

However, the final decision rests with the SEC. As practice shows, the regulator may require amendments to the application or reject the proposal entirely.