TL;DR
- Grayscale files application with SEC for a pioneering Privacy ETF.
- Grayscale Privacy ETF reflects the growing demand for data protection in financial transactions.
- Noteworthy allocation of 10% to privacy preservation protocols, including Zcash, providing investors with facilitated access to this cryptocurrency.
Grayscale, the renowned cryptocurrency asset manager, has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch an innovative Exchange-Traded Fund (ETF) focused on privacy.
This ETF, named Grayscale Privacy, would mark a historic milestone in the industry as the first to specifically target the protection of data privacy in financial transactions. The proposal aims to reflect the performance of various subcategories related to data security, privacy protection, and cybersecurity services, as well as products incorporating advanced technological solutions such as blockchain, artificial intelligence, and edge computing.
Grayscale files for Privacy ETF…
Index-based & would track cos involved in data security & protection, cybersecurity products & services incl blockchain-based technology solutions, etc.
Would also hold Grayscale Zcash Trust.
IMO, smart move for Grayscale to expand ETF lineup. pic.twitter.com/sS0cjDuh7U
— Nate Geraci (@NateGeraci) February 22, 2024
One of the most notable features of this ETF is its allocation of 10% to privacy preservation protocols, including Zcash, a cryptocurrency designed specifically to prioritize confidentiality and anonymity in transactions. Through Grayscale Zcash Trust (ZCSH), investors will have the opportunity to conveniently access investments in Zcash, avoiding the complexities associated with direct acquisition and secure storage of this cryptocurrency.
Grayscale Will Conduct Rigorous Company Selection for its ETF
To ensure the quality and robustness of the companies included in the ETF, the asset manager establishes strict selection criteria. Companies must offer publicly traded securities in the United States, be listed on developed or emerging stock markets, have a minimum market capitalization of $250 million, and meet certain liquidity criteria.
Grayscale’s submission to the SEC reflects its prominent role in the world of crypto asset management, with an estimated $27 billion in assets under management. Additionally, the asset manager has been recognized for its contribution to facilitating the approval of Bitcoin ETFs, such as GBTC, which became the largest Bitcoin ETF in the world.
The proposal of the Grayscale Privacy ETF represents an innovative response to market needs in terms of privacy protection and security in financial transactions. With careful asset selection and a focus on excellence, the asset manager continues to lead the way towards new investment opportunities in the cryptocurrency and financial technology space
