Five crypto ETFs involving staking and bundled tokens have been filed for by GSR, but its most prominent bid is a fund that invests in crypto treasury companies.
A new exchange-traded fund that bundles up crypto treasury companies could soon be introduced to Wall Street, alongside four other funds from crypto trading and market-making firm GSR.
According to a regulatory filing on Wednesday, a new fund that would invest in public crypto treasury companies is being sought by the company. The GSR Digital Asset Treasury Companies ETF would invest in companies that hold Bitcoin and Ether.
Four additional funds involving ETH and crypto staking are also included in the filing, which represents GSR’s inaugural entry into ETFs. One of these looks to bundle and track the prices of Bitcoin, Ether, and Solana.
Crypto treasury companies buy and hold crypto for the long term, a popular practice that has attracted significant funding. However, riskier altcoins have been gambled on by some to gain investor attention, which has alarmed analysts who have cautioned of an oversupplied market.
Crypto Treasury ETF Takes Neutral Approach to Holdings
GSR said in its filing that its crypto treasury ETF would purchase shares in public companies that own crypto. The fund is seemingly not limited to companies holding major tokens like Bitcoin or Ether.
At least 80% of the fund’s net assets (plus any borrowings for investment purposes) will be invested in equity securities of companies that hold digital assets in their corporate treasury, according to the filing.
Possible investments were defined as “any company that generally maintains a significant portion of its assets in one or more digital assets.” The filing also specified that the fund doesn’t have a minimum market capitalization for its investments.
The ETF is initially expected to hold “10–15 positions comprised of 5 to 10 issuers,” and some examples of these crypto treasury companies could include SUI Group Holdings (a buyer of Sui) and the BNB-holding firm CEA Industries.
GSR Plans to Launch Three Staking ETFs
The GSR Ethereum Staking Opportunity ETF, the GSR Crypto StakingMax ETF, and the GSR Ethereum YieldEdge ETF are also outlined in the filing, with all of them aiming to incorporate staking rewards.
The Ethereum Staking and YieldEdge ETFs will both use an offshore, wholly-owned subsidiary to buy and stake ETH on behalf of the fund, as they were submitted under the Investment Company Act of 1940, the “40 Act,” which has limitations on what the ETF can hold.
Ether staking ETFs, predominantly located outside the US, will also be invested in by the GSR Ethereum Staking fund. Meanwhile, the YieldEdge ETF will employ an “actively managed derivatives strategy” to enhance yield.
The StakingMax ETF, filed under the ‘40 Act’ and using an offshore subsidiary, has a goal to invest in cryptocurrencies and securities, with a particular emphasis placed on proof-of-stake cryptocurrencies and staking strategies.
Bitcoin, Ether, and Solana Bundle ETF May Hold Assets Directly
The GSR Crypto Core3 ETF, GSR’s fifth fund in the filing, is structured to track Bitcoin, Ether, and Solana, and it could hold the tokens directly.
The Core3 ETF was submitted under the Securities Act of 1933, the same as the immensely popular spot Bitcoin and Ether exchange-traded products that debuted last year.
GSR stated that the ETF aims to provide “balanced exposure to three of the most established digital assets.” Allocations of approximately one-third of its net assets would be maintained for each of Bitcoin, Ether, and Solana.
GSR’s filing is being released as other asset managers have introduced similar ETFs, including some with staking and others that track a group of crypto tokens, as Wall Street seeks market exposure.
