Topline
GSR Markets, a crypto trading firm, has filed to launch a new ETF that bundles a number of crypto treasury companies’ shares into one single fund, allowing investors to easily gain exposure to firms buying up crypto tokens.
Public tram advertising Asia’s first ETF, bitcoin exchange-traded fund in Hong Kong, Hong Kong, China. (Photo by: Bob Henry/UCG/Universal Images Group via Getty Images)
UCG/Universal Images Group via Getty Images
Key Facts
GSR’s Digital Asset Treasury Companies ETF would bundle companies that buy and hold cryptocurrencies on their balance sheets—known as digital asset treasury firms—into one single fund that investors can buy.
The ETF would also allow private investments in public equity (PIPE) deals—deals that allow investors to purchase equity directly from a publicly traded company—according to the filing.
While other ETFs offer crypto exposure, GSR’s fund is the first to offer exposure to the select group of crypto treasury companies.
The ETF is expected to launch pending regulatory approval by the Securities and Exchanges Commission, but a date has not been given.
GSR trades crypto tokens and provides venture funding for over 300 companies, according to its website.
What Is A Digital Asset Treasury Company?
Digital Asset Treasury Companies are firms raising capital through various measures to fund and hold significant portions of cryptocurrencies on their balance sheets. MicroStrategy , a software enterprise company turned crypto treasury, was the first to adopt this tactic in 2020 with bitcoin and crypto companies like Upexi Inc, Sharplink Gaming, and Bitmine Immersion Technologies have followed. Crypto ETFs, similar to stock ETFs, allow investors to invest in cryptocurrencies without directly owning them. These funds are overseen by professional fund managers and are under regulatory guidance. Investments can be managed through traditional brokerage accounts, without investors having to manage digital wallets or secure storages. Firms including BlackRock, Fidelity and Grayscale manage crypto ETFs across tokens like bitcoin, Ether, and Solana.
Tangent
The crypto treasury trend gathered steam this year, as companies rushed to take advantage of a crypto spike amid bitcoin’s all-time high in August. According to crypto tracker bitcointreasuries.net, the 194 bitcoin treasury companies hold more than $117 billion worth of the token.
Further reading
Why These Bitcoin Miners Are Becoming Summer’s Hot AI Stocks
The Rise And Reality Of Digital Asset Treasury Companies
Solana’s Institutional Moment: SOL Digital Asset Treasuries
