Grayscale Files for Worldcoin ETF Despite Massive Price Drop

Grayscale has officially filed with the SEC to launch a spot Worldcoin exchange traded fund. The proposed fund, which would trade on Nasdaq under the ticker GWLD, aims to offer investors exposure to the WLD token. This move follows the recent success of similar Grayscale products for other major assets.

While the filing shows quick progress, the documents highlight significant concerns regarding the asset. Grayscale noted that Worldcoin faces regulatory pushback in several countries, including Germany, Brazil, and Indonesia. These challenges stem from the project's use of biometric eye scanning technology to verify users.

Market data also paints a difficult picture for the token. WLD is currently trading at approximately 38 cents, which is a 97 percent drop from its peak price of $11.74 in March 2024. Furthermore, the filing points out that a very small group of wallets controls the vast majority of the supply, and large token releases are scheduled through July 2028.

Investors are now waiting to see if the SEC approves the fund. While a new ETF could make it easier to buy the token, the future of the project remains tied to regulatory developments and the impact of future supply unlocks on the market price.