Grayscale has submitted a registration statement to the US Securities and Exchange Commission aiming to launch an exchange traded fund focused on holding the Worldcoin native token, WLD. The proposed ETF would trade on Nasdaq under the ticker GWLD and provide investors direct exposure to WLD without the need for individual custody.
Fund Structure and Oversight
The Grayscale Worldcoin ETF is designed as a passive investment vehicle and will avoid using use or derivatives. Shares will be issued and redeemed in blocks of 10,000, called baskets. Authorized participants may exchange baskets for WLD tokens directly or opt for cash transactions facilitated by liquidity providers. BitGo Bank & Trust is slated to custody the fund’s WLD holdings, while the Bank of New York Mellon will serve as administrator and transfer agent. Oversight responsibilities will also include CSC Delaware Trust Company as trustee.
The filing omitted details on the management fee, initial seed investment, and the amount of WLD per share, indicating these will be specified in future amendments to the prospectus.
WLD is the core token of World Network, a digital identity project built by Tools for Humanity, founded by Sam Altman and Alex Blania. The network combines biometric verification methods through devices called Orbs with the World ID proof of personhood system and World Chain infrastructure.
As of June 30, approximately 3.5 billion WLD tokens were circulating, with an aggregated market capitalization near $1.4 billion and daily trading volume of $135.1 million, putting WLD in the 41st position by market cap. Despite the filing driving a 4% climb in WLD price, the token remains about 97% below its peak value of $11.80 reached in March 2024.
Risks highlighted in the registration include regulatory challenges related to World Network’s use of biometric data and iris imaging through Orb devices, which have faced legal restrictions across various jurisdictions. Additional concerns involve the centralized sequencer in World Chain, the token’s price volatility, and potential classification of WLD or its transactions as securities. Should adverse regulatory rulings occur, the trust’s viability and token value could be materially affected.
