GSR Files for Five Crypto-Focused ETFs Targeting Treasury Companies and Ethereum Staking

By: Eliza Bennet

In a groundbreaking move, GSR has filed for five innovative exchange-traded funds (ETFs) with the U.S. Securities and Exchange Commission (SEC), showcasing a strategic focus on digital asset treasury companies and Ethereum staking. This marks GSR's initial foray into ETFs, aiming to track the performance of digital asset-focused treasury companies and diverse Ethereum staking strategies. The filing, dated September 24, outlines the ambitious fund structures designed to navigate crypto market dynamics.

The main highlight of the filings is the GSR Digital Asset Treasury Companies ETF, which will endeavor to achieve total return by investing predominantly in companies that hold significant digital asset reserves within their treasuries. At least 80% of the fund’s assets are projected to be allocated to such companies, providing robust market exposure without direct cryptocurrency investment. This strategy caters to investors interested in capitalizing on the corporate adoption of cryptocurrency strategies while maintaining a relatively low-risk profile.

Accompanying this ETF are four Ethereum-centric funds focusing on maximizing returns through staking opportunities and yield generation. The GSR Ethereum Staking Opportunity ETF, for instance, is designed to replicate Ethereum's performance, including staking rewards, while the GSR Crypto StakingMax ETF concentrates on capital appreciation by targeting cryptos using proof-of-stake mechanisms. Additionally, the GSR Crypto Core3 ETF provides balanced exposure by allocating equal portions to Bitcoin, Ethereum, and Solana, ensuring diverse asset inclusion. Finally, the GSR Ethereum YieldEdge ETF seeks to enhance yields by integrating Ethereum staking with derivative strategies, aiming for optimal financial performance.

These ETF offerings come in the wake of the SEC's approval of generic listing standards to streamline the listing processes for commodity-based trust shares across major exchanges, significantly reducing the regulatory approval times. This development resonated well within the financial sector, particularly amidst the $1.9 billion inflow into crypto ETPs following recent U.S. interest rate cuts. While the framework provided by generic standards does not guarantee automatic approval for all crypto ETPs, it signifies a crucial step in mainstream financial market integration of digital assets.