GSR enters crypto ETF field with actively managed multi-asset fund tracking Bitcoin, Ethereum and Solana

GSR launched its first exchange-traded fund on Wednesday, marking the major crypto market maker’s latest step toward becoming an RWA investment bank. 

The GSR Crypto Core3 ETF, which is listed on Nasdaq under the BESO ticker, will provide exposure to the Bitcoin, Ethereum, and Solana networks by investing in their native coins and accumulating staking rewards “where applicable.” The fund will be actively managed, with planned weekly rebalances, and will charge a 1% management fee, according to the announcement.

According to the announcement, BESO is the first actively-managed multi-asset crypto ETF in the U.S. with access to staking. 

The launch comes amid a Cambrian explosion of exchange-traded products unlocked first by the introduction of the spot Bitcoin and Ethereum ETFs in 2024, which became some of the fastest-growing investment products on record, and encouraged by a more lenient Securities and Exchange Commission last year. 

Notably, major banks Morgan Stanley and Goldman Sachs are also making moves in the crypto ETF field, likely inspired by the success of BlackRock’s Bitcoin and Ethereum trusts, which are the largest and most actively traded funds of their type. 

Several firms have launched funds designed to track a basket of digital currencies, including Grayscale and Hashdex. That said, the SEC has been hesitant about some multi-asset strategies and permitting Ethereum and Solana staking. 

“Core3 answers the three questions every crypto investor faces: what to own, how to earn yield while you hold, and how to be positioned as markets evolve,” GSR Managing Director Andy Baehr said. “As crypto becomes an increasingly important component of modern portfolios, Core3 provides exposure to the asset class’s primary drivers — Bitcoin’s macro influence and the continued growth and adoption of blockchain technology.”

GSR has also taken major steps in recent months to expand beyond the market-making vertical where it built its reputation. In March, the firm announced the acquisitions of Autonomous and Architech to flesh out its token advisory business, and earlier this month, it invested in the SC Ventures-backed tokenization platform Libeara.

The announcement notes Core3 “marks the next step in GSR’s evolution as a full-scope capital markets partner, expanding its asset management platform to deliver investment products and services for both crypto native and traditional investors alike.”

“GSR has spent over a decade building efficient crypto markets, and with Core3, we are extending that expertise into a product accessible to a broader range of investors,” GSR CEO Xin Song said. “Our ETF strategy reflects our deep understanding of how this asset class is evolving."