Asset manager Grayscale has begun procedures to launch a spot exchange-traded fund (ETF) based on the Worldcoin token, WLD.

On July 21 (local time), blockchain outlet Cryptopolitan reported that Grayscale submitted a registration statement to the U.S. Securities and Exchange Commission (SEC) for the Grayscale Worldcoin ETF.

The product is structured to hold WLD directly. Grayscale is pursuing a plan to list it on Nasdaq under the ticker GWLD, and it tracks pricing based on the CoinDesk Worldcoin Benchmark Rate. It is a passive product that does not use leverage or derivatives. Grayscale said the goal is to let investors gain exposure to WLD without going through a cryptocurrency exchange or storing tokens directly.

Details of custody and administration were also disclosed. BitGo Bank & Trust will hold the trust’s WLD. The Bank of New York Mellon will serve as administrator and transfer agent, and CSC Delaware Trust Company was selected as trustee.

GWLD is only at the stage of having a registration statement submitted, so it needs both SEC approval and Nasdaq listing approval. A 19b-4 rule-change process is also still required for the listing.

Worldcoin is the native token of World Network. World Network is an identity project developed by Tools for Humanity and co-founded by OpenAI CEO Sam Altman and Alex Blania. The project combines World ID for proving personhood, World Chain, World App and a spherical device called Orb that scans irises.

The issue is regulatory risk. Between 2024 and 2025, regulators in several countries imposed restrictions and enforcement actions and issued court rulings over Orb and the collection of iris images. Grayscale cited these regulatory issues, along with World Chain’s centralized sequencer structure, WLD’s high volatility and the possibility that regulators could judge the token to be a security, as risk factors. These variables could lead to a drop in the token’s value or the ETF’s termination.

Ownership concentration is also high. The top 100 wallets hold about 90 percent of circulating WLD. Unlocking of team and investor allocations is expected to continue until around July 2028.

Market reaction was limited but immediate. WLD rose about 4 percent after the filing, but its price is around $0.375, about 97 percent below its peak two years ago. Documents submitted by Grayscale said WLD had circulating supply of about 3.5 billion tokens as of June 30, market capitalization of about $1.4 billion and daily trading volume of $135.1 million.

The application extends a broader push by Grayscale to expand its lineup of crypto ETF products. Grayscale converted its flagship bitcoin trust into an ETF in January 2024 and later launched an ethereum fund. It later added or applied for products related to Solana, Dogecoin and Chainlink.

In this situation, the move to pursue a spot Worldcoin ETF can be seen as an attempt to bring WLD into a U.S. regulated investment product. Whether trading actually begins depends on SEC review, Nasdaq listing procedures and whether it can clear regulatory risks surrounding Worldcoin.