GSR filed a filing of five crypto-centric exchange trading funds (ETFs) with the Securities and Exchange Commission on September 24, tracking the performance of the Department of Digital Assets Treasury (DAT) companies (ETH).
Digital Asset Treasury Companies ETF aims to achieve total revenue by investing in the equity securities of companies holding digital assets in the Ministry of Corporate Treasury.
The fund invests at least 80% of its assets in these digital asset financing companies, and advisors define qualified companies as those that maintain the majority of Crypto’s holdings.
The fund is expected to hold approximately 10-15 positions, including 5-10 issuers under current market conditions, and focuses primarily on securities registered in the US.
This strategy avoids direct cryptocurrency exposure and gains performance through equity investments in companies that instead employ cryptocurrency strategies. Examples include Strategy, Upexi, Defi Development Corp, and CEA Industries.
Staking Revenue Strategy
GSR’s four Ethereum-centric funds cover a variety of aspects of compensation and yield generation.
The GSR Ethereum stake Opportunity ETF aims to replicate ETH performances, including reward staking. At the same time, the GSR Crypto StakingMax ETF aims to achieve capital gains through investment in crypto based on the consensus of proof.
The GSR Crypto Core3 ETF offers a balanced exposure to Bitcoin, Ethereum and Solana, offering approximately 33% of the allocation to each asset.
The GSR Ethereum edveredge ETF combines Ethereum staking exposure with derivatives to enhance yields.
Each fund constitutes an approach to maximizing participation while maintaining daily liquidity and ensuring that portfolio management remains illiquid, based on the requirements of Rule 22E-4.
General List Standard
The filing arrived a week after the SEC approved the general listing criteria for commodity-based trust stocks across the NASDAQ, CBOE and the New York Stock Exchange.
These standards can streamline the approval process for exchange-sold products associated with digital assets, and reduce the review period for qualified products from up to 240 days to 60-75 days.
However, the general purpose standard does not automatically approve all cryptographic ETPs because the threshold requirements remain in place.
The timing of the GSR is reconciled with agency interest in crypto-exposed vehicles as 25 basis points of US interest rates promoted $1.9 billion for Crypto ETP.