On July 20, Grayscale filed a registration statement with the U.S. Securities and Exchange Commission to launch a spot ETF for the Worldcoin (WLD) token. The proposed fund would trade on Nasdaq under the ticker GWLD, pending regulatory and exchange approval.
The ETF aims to hold WLD tokens directly, offering shareholders exposure to Worldcoin without requiring them to purchase or custody the tokens themselves. It would operate as a passive vehicle without use or derivatives, using the CoinDesk Worldcoin Benchmark Rate to track token value. BitGo Bank & Trust is designated to custody the tokens, with The Bank of New York Mellon as administrator and transfer agent, and CSC Delaware Trust Company as trustee.
Token and Regulatory Risks
WLD, native to the World Network built by Tools for Humanity and co-founded by OpenAI CEO Sam Altman and Alex Blania, is currently trading near $0.375. This price sits approximately 97% below its peak from two years ago. The World Network includes biometric identity verification via iris scans through its Orb device, a system that has faced regulatory scrutiny globally. Several countries including Spain, Portugal, Germany, Hong Kong, Brazil, Kenya, and Indonesia have initiated legal or regulatory actions concerning the biometric data used by Worldcoin.
The registration filing details substantial risks tied to biometric data regulation and market volatility of the WLD token. The ETF’s launch is subject to approval of SEC rule changes, specifically a 19b-4 filing, as well as Nasdaq’s listing consent.
This material is for informational purposes only and does not constitute financial advice.
