GSR submitted filings for five crypto-focused exchange-traded funds (ETFs) to the Securities and Exchange Commission on Sept. 24, tracking the performance of digital asset treasury (DAT) companies and Ethereum (ETH) staking.
The Digital Asset Treasury Companies ETF aims to achieve total return by investing in equity securities of companies that hold digital assets in their corporate treasuries.
The fund will invest at least 80% of its assets in these Digital Asset Treasury Companies, with the adviser defining eligible companies as those that maintain a significant portion of their holdings in crypto.
The fund expects to hold approximately 10 to 15 positions, comprising 5 to 10 issuers, under current market conditions, with a primary focus on US-listed securities.
The strategy avoids direct cryptocurrency exposure, instead capturing performance through equity investments in companies that have adopted crypto treasury strategies. Examples include Strategy, Upexi, DeFi Development Corp, and CEA Industries.
Staking revenue strategy
GSR’s four Ethereum-centered funds target different aspects of staking rewards and yield generation.
The GSR Ethereum Staking Opportunity ETF aims to replicate ETH’s performance, including staking rewards. At the same time, the GSR Crypto StakingMax ETF aims to achieve capital appreciation through investments in crypto based on proof-of-stake consensus.
The GSR Crypto Core3 ETF offers balanced exposure to Bitcoin, Ethereum, and Solana, with approximately 33% of the allocation to each asset.
The GSR Ethereum YieldEdge ETF combines Ethereum staking exposure with derivatives to enhance yield.
Each fund structures its approach to maintain daily liquidity while maximizing staking participation, with portfolio management ensuring no more than 15% of assets remain illiquid under Rule 22e-4 requirements.
Generic listing standards
The filings arrive one week after the SEC approved generic listing standards for commodity-based trust shares across Nasdaq, Cboe, and the New York Stock Exchange.
These standards streamline the approval process for exchange-traded products tied to digital assets, potentially reducing review periods from up to 240 days to 60-75 days for qualifying products.
However, the generic standards do not automatically approve all crypto ETPs, as threshold requirements remain in place.
GSR’s timing aligns with renewed institutional interest in crypto exposure vehicles, as the 25 basis point cut in US interest rates drove $1.9 billion into crypto ETPs.
