Grayscale targets Worldcoin ETF: WLD has lost 97% from its peak, and risks remain sky-high
On July 20, investment giant Grayscale 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. The move is swift: the trust was established on July 10, and registration documents were submitted to the regulatory body just ten days later.
The fund's asset custody has been entrusted to BitGo, while BNY Mellon will handle accounting support. Grayscale is following a proven playbook — the company successfully converted its Bitcoin Trust into an ETF in January 2024 and later expanded its product line with offerings based on Solana and Dogecoin. Key parameters of the new instrument, including fee structure and the market maker pool, remain undisclosed for now.
Risks Grayscale does not hide
In the filing, the company details Worldcoin's instability factors in depth. The iris scanning technology via Orb devices has drawn serious regulatory scrutiny worldwide. In 2024-2025, strict restrictions against the project were imposed by Spain, Portugal, Germany, Hong Kong, Brazil, Kenya, and Indonesia.
But the main headache is tokenomics. Nearly 90% of the current WLD supply is concentrated in the hands of just 100 large wallets. The unlocking of tokens for the team and investors will stretch approximately until July 2028, creating constant downward pressure on the price. At the time of the filing, the coin was trading around $0.375, up a symbolic 3.3% over the day. However, from its all-time high of $11.74 (March 2024), the asset has plummeted nearly 97%.
Summer spot purchases only briefly supported quotes — layoffs at Tools for Humanity, the project's lead developer, sent the chart crashing again.
My view
The launch of GWLD will undoubtedly open convenient access to Worldcoin for institutional investors, which could temporarily heat up the market. But the fundamental problems — regulatory uncertainty, extreme supply concentration, and a long unlocking schedule — will not go away. Until these risks are resolved, any rise in WLD risks being just another correction within a long-term downtrend.