Grayscale Files for Spot Worldcoin ETF on Nasdaq

Filing Details

Grayscale submitted an S-1 registration statement with the U.S. Securities and Exchange Commission on July 20 for the proposed Grayscale Worldcoin ETF. The fund would list on Nasdaq under the ticker symbol GWLD and operate as a passive vehicle holding the WLD token directly. Shares would track the performance of WLD, less fees and expenses, using a benchmark reference rate.

The structure includes in-kind creations and redemptions in baskets of 10,000 shares. BitGo Bank & Trust would serve as custodian for the digital assets, with The Bank of New York Mellon acting as administrator and transfer agent, and CSC Delaware Trust Company as trustee. Several details, including the management fee and initial seed investment, remain unspecified and would be addressed in future amendments.

This filing represents another step in Grayscale’s expansion of single-asset crypto products beyond its established Bitcoin and Ethereum offerings.

Market Reaction

The announcement prompted a positive response in the WLD market. The token climbed approximately 4% to 6% in the 24 hours following the filing, trading near $0.37 to $0.38. Trading volume increased notably, though the asset remains significantly below its all-time high reached in March 2024.

WLD’s market capitalization stood around $1.3 billion to $1.4 billion, with roughly 3.5 billion tokens in circulation as of late June. The price movement occurred alongside strength in the broader cryptocurrency market, including Bitcoin surpassing $65,000.

Project Background and Risks

Worldcoin, rebranded as part of World Network, is a digital identity initiative co-founded by OpenAI CEO Sam Altman. The project uses iris-scanning Orbs for biometric verification to establish proof of personhood, alongside the World App, World Chain layer-2 network, and the WLD token.

Grayscale’s filing explicitly outlines several risks. Regulatory actions related to biometric data collection have occurred in countries including Spain, Portugal, Germany, Hong Kong, Brazil, Kenya, and Indonesia. The prospectus also notes high token concentration, with the top 100 wallets holding about 90% of circulating supply, and scheduled unlocks continuing through 2028.

Additional concerns include potential classification of WLD as a security, volatility in the token’s price, and operational aspects such as World Chain’s centralized sequencer.

Grayscale’s Broader ETF Strategy

The Worldcoin filing adds to Grayscale’s lineup of crypto-related exchange-traded products. The firm previously converted its Bitcoin Trust into a spot ETF and has pursued or launched vehicles for other assets. Approval of the Worldcoin ETF would require SEC review of the registration statement and Nasdaq compliance with generic listing standards for crypto products.

The development underscores continued institutional interest in bringing diverse digital assets into regulated investment vehicles, even as the underlying token faces project-specific challenges.