Summary
- Grayscale has submitted a filing with the SEC to create the inaugural U.S. ETF linked to Worldcoin, the biometric cryptocurrency initiative co-founded by Sam Altman of OpenAI.
- This Grayscale Worldcoin ETF aims to hold WLD and will be traded on Nasdaq under the ticker GWLD, with BitGo serving as the custodian and BNY Mellon as the transfer agent.
- In response to the announcement, WLD experienced an approximate 8% increase, although it is still down roughly 5.5% for the week.
The WLD token of Worldcoin saw a significant uptick after Grayscale filed to introduce the first U.S. exchange-traded fund associated with the biometric cryptocurrency project, bringing Sam Altman's eye-scanning initiative closer to mainstream finance.
Following the filing, WLD rose nearly 8% within a 24-hour period, reaching an intraday peak of $0.387. Nonetheless, it remains approximately 5.5% down over the week, based on data from CoinGecko.
On Monday, Grayscale submitted an S-1 registration statement for the Grayscale Worldcoin ETF, described as a "passive" investment vehicle that will hold WLD—the native token of the World Network—and will track its price using the CoinDesk Worldcoin Benchmark Rate, as per the filing.
If the SEC grants approval, the fund will be listed on Nasdaq under the ticker GWLD, adhering to the exchange's standard listing requirements for commodity-based trusts. This means it could potentially launch without needing a separate SEC rule change once WLD fulfills Nasdaq's eligibility requirements. The tokens will be safeguarded by BitGo Bank & Trust, while the Bank of New York Mellon will act as the transfer agent and administrator, according to the filing. WLD ranks as the 55th largest cryptocurrency, boasting a market cap of approximately $1.4 billion, according to CoinGecko.
Overview of Sam Altman's Eye-Scanning Initiative
Worldcoin—rebranded simply as "World" in 2024—was co-founded by Sam Altman, CEO of OpenAI, with the goal of establishing a global "proof of personhood" framework. It employs a spherical device known as the Orb to scan individuals' irises, providing a unique "World ID" to verify that a person is a legitimate human and not an AI bot, while also distributing WLD tokens to authenticated users. The initiative has faced regulatory challenges concerning its biometric data collection practices in regions such as the EU, as well as in countries like Brazil and Kenya.
This ETF filing signifies a growing institutional interest in the token. Last year, Eightco, a Nasdaq-listed company, established the first corporate treasury around WLD, accumulating one of the largest known holdings in the cryptocurrency.
Grayscale's Expansion into ETFs
This filing marks a continuation of Grayscale's efforts to expand its range of cryptocurrency ETFs. The company successfully transformed its flagship Bitcoin trust into an ETF after a key legal victory against the SEC, subsequently launching an Ethereum fund and has filed for or introduced products linked to Dogecoin, Solana, XRP, Litecoin, and Chainlink, among others.
Currently, this filing is merely an initial step: the fund cannot commence trading until the registration becomes effective and WLD meets Nasdaq's listing standards. If successful, it would offer retail investors their first opportunity to invest in Worldcoin through a U.S. brokerage account.