Worldcoin's WLD token surged nearly 8% after Grayscale's SEC filing for a Worldcoin ETF, although it remains down 5.5% for the week.
Summary
- Grayscale has filed with the SEC to launch the first U.S. ETF tied to Worldcoin, a biometric cryptocurrency co-founded by Sam Altman.
- The proposed ETF will hold WLD and trade on Nasdaq under the ticker GWLD, with BitGo as custodian and BNY Mellon as transfer agent.
- WLD surged nearly 8% following the announcement, though it remains down about 5.5% for the week.
The WLD token associated with Worldcoin experienced a notable surge after Grayscale's announcement regarding the establishment of the first U.S. exchange-traded fund (ETF) linked to the biometric cryptocurrency initiative co-founded by Sam Altman. The filing brings Worldcoin's eye-scanning initiative closer to the mainstream financial sector.
In the aftermath of the announcement, WLD climbed roughly 8% within 24 hours, hitting an intraday high of $0.387. However, it is still down approximately 5.5% for the week, according to CoinGecko data.
On Monday, Grayscale submitted an S-1 registration statement for the Grayscale Worldcoin ETF, which is characterized as a passive investment vehicle designed to hold WLD—the native token of the World Network—and track its price via the CoinDesk Worldcoin Benchmark Rate.
Should the SEC approve the filing, the fund will be listed on Nasdaq under the ticker GWLD, complying with the exchange's standard requirements for commodity-based trusts. This could allow for a potential launch without necessitating a separate SEC rule change, provided WLD meets Nasdaq's eligibility criteria. BitGo Bank & Trust will hold the tokens, while BNY Mellon will serve as the transfer agent, as detailed in the filing. Currently, WLD ranks as the 55th largest cryptocurrency with a market capitalization of about $1.4 billion, according to CoinGecko.
Overview of Sam Altman's World Initiative
Worldcoin, which will be rebranded as "World" in 2024, was co-founded by Sam Altman, CEO of OpenAI, aiming to create a global "proof of personhood" system. It uses a spherical device, the Orb, to scan individuals' irises, granting a unique "World ID" to verify that a person is human and not an AI, while also distributing WLD tokens to verified users. The initiative has encountered regulatory scrutiny regarding its biometric data collection in various regions, including the EU, Brazil, and Kenya.
The ETF filing indicates increasing institutional interest in WLD. Last year, Eightco, a company listed on Nasdaq, became the first corporate treasury to accumulate a significant holding in the cryptocurrency.
Grayscale's ETF Expansion
This latest filing is part of Grayscale's ongoing strategy to broaden its cryptocurrency ETF offerings. The company previously converted its Bitcoin trust into an ETF following a significant legal win against the SEC and has since launched an Ethereum fund, alongside various other crypto products linked to assets like Dogecoin, Solana, and XRP.
It’s important to note that the filing is just the first step; trading cannot begin until the registration is effective and WLD satisfies Nasdaq's listing requirements. If successful, this would enable retail investors to invest in Worldcoin via U.S. brokerage accounts.
