Despite SEC Chair Gary Gensler’s belief that most cryptocurrencies are securities, Grayscale Investments continues to launch new digital asset investment products.
Grayscale has introduced two new standalone crypto trusts, providing limited exposure to Bitcoin layer-2 network Stacks (STX) and altcoin blockchain Near Protocol (NEAR).
In a Thursday press statement, Grayscale’s head of product and research, Rayhaneh Sharif-Askary, explained that the creation of these trusts is in response to the growing demand for diversified crypto-asset vehicles in a rapidly developing decentralized marketplace.
“By creating distinctive solutions to address blockchain’s scalability challenges, Stacks and Near are poised to help foster greater adoption”, said Sharif-Askary.
— Grayscale (@Grayscale) May 23, 2024We are proud to announce the creation of two new single-asset crypto investment trusts, available through private placement: Grayscale® Near Trust ($NEAR) and Grayscale® Stacks Trust ($STX).
Read more in our press release: https://t.co/Ve8RCQyKmh
Grayscale’s spot Ethereum ETF play
Meanwhile, Grayscale is expanding its crypto suite simultaneously with efforts to list a spot Ethereum (ETH) ETF, following the successful conversion of its GBTC product from a trust to an exchange-traded fund.
Odds of a U.S. SEC approval for the application improved in recent days, and observers are optimistic about its success. Several prospective issuers have submitted amended filings in 19b-4 forms.
Bloomberg’s Eric Balchunas highlighted that recent developments indicate progress with spot Ether ETFs, and a willingness from the SEC to consider the products, despite political tailwinds. However, the commission’s classification of ETH remains a bone of contention.
For this reason, issuers removed all staking language from filings and a 25% chance of rejection still exists. The Wall Street “cop on the beat” is scheduled to deliver its final decision on two bids before week’s end. At the same time, Chair Gary Gensler once again reiterated that most cryptocurrencies are securities assets and should fall under the purview of his agency.