Grayscale storms Worldcoin: WLD-ETF application filed, but token crashed by 97%
Grayscale Investments made an unexpected but telling move: on July 20, the company filed an application with the SEC to launch a spot exchange-traded fund (ETF) based on Worldcoin (WLD). If the regulator gives the green light, the instrument will trade on Nasdaq under the ticker GWLD. This event has attracted market attention, although the asset itself is far from its best days.
According to the documentation, the trust was created just 10 days before the filing — on July 10. BitGo will serve as the WLD custodian, while BNY Mellon will handle accounting support. Key details have not yet been disclosed: the fund's fee size and the list of trading partners. However, the very fact that Grayscale chose Worldcoin for its next ETF speaks volumes.
Why is Grayscale taking a risk?
In the documents, the company honestly lists the risks. Worldcoin uses biometric identification through the Orb device, which has already triggered a harsh response from regulators in Spain, Portugal, Germany, Hong Kong, Brazil, Kenya, and Indonesia. These are not just bureaucratic hurdles — they are systemic limitations for scaling the project.
But the main headache is the token distribution itself. Nearly 90% of the circulating WLD supply is concentrated in the top 100 addresses. Meanwhile, the unlocking of tokens for the team and investors will continue at least until July 2028. This creates enormous downward pressure on the price, and the market has already priced this in.
WLD has dropped 97%: what's next?
At the time of writing, WLD is trading around $0.375, up 3.3% from the previous day. But from its all-time high of $11.74, set in March 2024, the asset has lost 97%. Even June purchases by the team could not sustain the price — layoffs at Tools for Humanity quickly sent quotes back into a downtrend.
My opinion: Grayscale's filing is an attempt to create an institutional bridge for a highly volatile and controversial asset. Yes, SEC approval would open access to WLD for traditional investors, but the project's fundamental problems — regulatory pressure and upcoming unlocks — will not disappear. Until these risks are resolved, any growth in WLD will be speculative in nature. GWLD trading will not begin until the SEC gives the go-ahead, and this could drag on for months.