US-based Simplify Asset Management, a Registered Investment Adviser, filed an application to offer the world’s first Web 3.0-focused Exchange-Traded Fund (ETF) on January 12.
According to SEC documents filed Wednesday, the ‘Simplify Volt Web 3 ETF’ aims to list on the New York Stock Exchange Arca under the ticker symbol ‘WIII’. The ETF will invest primarily in “equity securities, including common stocks, partnership interests, business trust shares and other equity investments or ownership interests” of the US and foreign Web3 companies.
While the investment vehicle will not invest in cryptocurrencies or crypto derivatives directly, it may track the performance of companies with exposure to one or more cryptocurrencies as part of their balance sheet or company activities.
Per the filing, Web 3.0 companies “are companies that the sub-adviser believes are focused on and expected to benefit from shifting the bases of technology infrastructure from a centralized self-hosted hardware infrastructure to a decentralized cloud infrastructure.”
In addition, 10% of the ETF assets will be allocated to Grayscale Bitcoin Trust, currently the world’s largest Bitcoin fund with $37 billion in AuM.
Simplify Asset Management CEO and co-founder Paul Kim and Chief Investment Officer and co-founder David Berns will actively operate this ETF. The asset manager currently operates multiple ETFs, with total assets under management equivalent to roughly $1.13 billion.