How to Invest in Web 3.0 with Grayscale’s SEC Filing

Investing in Web 3.0

Following the approval of the first Ether (ETH) exchange-traded fund (ETF), Grayscale Investments is looking to convert its Grayscale Ethereum Trust to a spot Ether exchange-traded fund (ETF).

The New York Stock Exchange Arca filed for the conversion with the United States Securities and Exchange Commission (SEC) on Oct. 2. Grayscale’s existing trust invested in Ether futures contracts as an indirect means of exposure to ETH, but a spot ETF will invest in the underlying asset itself.

Grayscale CEO Michael Sonnenshein announced the move on X (formerly Twitter) and highlighted the firm’s intent to provide conventional investment products offering exposure to cryptocurrency assets, such as investing in Web 3.0.

The Grayscale Ethereum Trust was launched in March 2019 and went on to become an SEC reporting company in October 2020, giving the public direct insight into the performance of its cryptocurrency investment vehicle.

For those looking to invest in Web 3.0, there are a number of options available. One way to invest is to purchase tokens directly from a Web 3.0 platform. Another option is to invest in Web 3.0 companies, which are typically startups or established companies that are developing products and services related to Web 3.0. It is also possible to invest in Web 3.0 through traditional investment products such as ETFs. Additionally, investors can become Web 3.0 developers and create their own applications and services related to Web 3.0.

To understand the differences between Web 2.0 and Web 3.0, it is important to look at the history of the web. Web 1.0 was the first iteration of the web, which was mostly used for static content. Web 2.0 was the second iteration of the web and was characterized by the rise of social media, user-generated content, and interactive applications. Web 3.0 is the current iteration of the web and is characterized by the use of distributed ledgers, decentralized applications, and the emergence of Web 3.0 tokens.

Investing in Web 3.0

At the time of writing, the Ethereum Trust is valued at $4.9 billion and accounts for around 2.5% of circulating ETH. Grayscale also reports that 250,000 investor accounts have exposure to the trust.

Grayscale is committed to taking its cryptocurrency products through an “intended four phase lifecycle” ending with a conversion to an ETF. Currently, the platform offers 17 different cryptocurrency investment products.

This article is available as an NFT, preserving this moment in history and showing support for independent journalism in the crypto space. To learn more about how to invest in Web 3.0 tokens, companies, and developers, as well as the history of Web 1.0, 2.0, and 3.0, read on.