Crypto trading and market-making firm GSR is planning to launch its first exchange-traded fund (ETF) focused on companies that hold digital assets.
According to a regulatory filing, the proposed GSR Digital Asset Treasury Companies ETF “will not invest directly in digital assets such as Bitcoin, Ether, or other cryptocurrencies.” Instead, it would invest in public companies that own cryptocurrencies, such as Bitcoin and Ether, in their corporate treasuries.
GSR expects the ETF to hold around 10-15 positions, covering 5-10 companies, including firms investing in altcoins. Examples of companies that could be included are major players like Strategy Inc. (MSTR), CEA Industries (BNC), and Bitmine Immersion Technologies (BMNR), along with other firms.
As per the filing, GSR plans to allocate at least 80% of its assets to publicly traded companies. It also read, “any company that generally maintains a significant portion of its assets in one or more digital assets.”
In addition to this treasury-focused ETF, GSR is planning four other crypto ETFs: Core3 ETF, Ethereum Staking Opportunity ETF, Crypto StakingMax ETF, and Ethereum YieldEdge ETF. These funds focus on staking and related strategies. Some will have offshore subsidiaries that will stake Ethereum or invest in other staking-related products.
GSR intends to organize the Ethereum Staking and YieldEdge ETFs via offshore wholly-owned subsidiaries so they can purchase and stake Ethereum while being governed by U.S. laws under the Investment Company Act of 1940.
The Ethereum Staking fund will predominantly invest in Ether staking ETFs offshore, and the YieldEdge ETF will utilize an actively managed derivatives strategy. The StakingMax ETF will invest in cryptocurrencies and securities relating to proof-of-stake networks, utilizing an offshore subsidiary.
The GSR Ethereum Staking Opportunity ETF aims to track the movement of Ethereum (ETH) plus staking rewards. Investors in this fund would be charged a yearly management fee of around 1%, and other charges would be minimal.
The Crypto Core3 ETF is intended to follow Bitcoin, Ether, and Solana, and could directly hold the tokens. It is listed under the Securities Act of 1933 and intends to invest about one-third of its assets in each token to provide exposure to the three leading digital assets.
The launch comes as a result of a rising trend among asset managers providing ETFs tracking cryptocurrencies and staking strategies.
