Grayscale Investments, despite SEC Chair Gary Gensler’s stance on cryptocurrencies as securities, is pushing ahead with the launch of new digital asset investment products.
The company recently unveiled two separate crypto trusts, offering limited exposure to Bitcoin layer-2 network Stacks (STX) and altcoin blockchain Near Protocol (NEAR).
In a recent announcement, Grayscale’s head of product and research, Rayhaneh Sharif-Askary, emphasized that the creation of these trusts was driven by the increasing demand for diversified crypto-asset options in the rapidly evolving decentralized market.
“By providing unique solutions to tackle blockchain’s scalability issues, Stacks and Near are well-positioned to drive greater adoption,” stated Sharif-Askary.
In addition to these new offerings, Grayscale is also working on launching a spot Ethereum (ETH) ETF, after successfully converting its GBTC product from a trust to an exchange-traded fund.
The likelihood of SEC approval for the ETH ETF application has improved recently, with amended filings in 19b-4 forms from multiple potential issuers. Bloomberg’s Eric Balchunas noted progress in the approval process for spot Ether ETFs, indicating a shift in the SEC’s willingness to consider such products despite regulatory challenges. However, the debate over the classification of ETH as a security asset continues to be a point of contention.
To increase the chances of approval, issuers have removed staking language from their filings, though a 25% chance of rejection still looms. The SEC is expected to make a final decision on two pending bids soon, while Chair Gary Gensler has reiterated his stance that most cryptocurrencies should be treated as securities under the SEC’s jurisdiction.
As the SEC considers approving Ethereum ETFs, speculation abounds regarding the impact of political factors on the decision-making process.