Crypto Funds Trade in Coins Scrutinized by SEC

WASHINGTON—Asset managers are offering funds that invest in cryptocurrencies whose legal viability has been questioned by regulators, underscoring the risks investors are taking to try to benefit from the sector’s rapid growth.

Grayscale Investments, which calls itself the world’s largest digital-currency asset manager, launched a fund two months ago that invests in tokens tied to crypto-trading platforms including Uniswap and SushiSwap. Wealthier U.S. investors are eligible to buy the Grayscale Decentralized Finance (DeFi) Fund’s shares, which don’t freely trade now but could in the future, according to the company.