- Grayscale Investments has announced its first ETF, the Grayscale Future of Finance ETF.
- The exchange traded fund tracks the Bloomberg Grayscale Future of Finance Index, which is a basket of various crypto-focused companies.
- For now, the index includes 22 companies.
Grayscale Investments has launched its first exchange traded fund. The Grayscale Future of Finance ETF will track the Bloomberg Grayscale Future of Finance Index.
Grayscale ETF Begins Trading
Grayscale Investments, the world’s largest digital asset manager with over $38 billion in assets under management, has made its first foray into ETFs.
Grayscale announced the update in a Wednesday press release. The Grayscale Future of Finance ETF will begin trading on the New York Stock Exchange under the ticker symbol GFOF with U.S. Bank acting as its service provider. The ETF will track the performance of the Bloomberg Grayscale Future of Finance Index, which is a basket of stocks of various cryptocurrency-related companies. It initially features 22 firms, including Block, PayPal, Coinbase, and Silvergate Capital.
The Bloomberg Intelligence-crafted index that the ETF will track includes three broad types of companies in the digital assets space: “financial foundations,” “technology solutions,” and “digital asset infrastructure.” According to the press release, the financial foundations category will include crypto exchanges, brokerages, as well as investment managers. Technology solutions applies to companies that provide data and processing critical to the technology of the digital economy, and infrastructure companies includes cryptocurrency miners and other firms that help power the crypto ecosystem.
The fund will not be actively managed but rather rebalanced quarterly. Notably, it does not directly invest in coins or tokens, but maintains indirect exposure to the industry through crypto-related companies.
David LaValle, the Global Head of ETFs at Grayscale, called today’s move “a first step in what will be an ongoing strategic expansion of Grayscale’s investment offerings that leverage the ETF wrapper.”
This new digital assets focused exchange traded fund follows the SEC’s numerous rejections (or deferrals) of Bitcoin spot ETFs that directly track BTC. Just last week, the U.S. financial regulator denied Fidelity’s application. The SEC’s long history of Bitcoin spot ETF rejections is likely what spurred Valkyrie’s recent application for an ETF focused on Bitcoin mining. Grayscale has vocally opposed the SEC’s repeated spot ETF rejections and signaled that it hopes for its flagship product, GBTC, to become an ETF in the future. Meanwhile, it continues to provide investors exposure to crypto through GBTC and its other trusts. Now, with the Grayscale Future of Finance ETF launch, the firm is giving institutional investors new ways to get exposure to the fast-growing asset class.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and several other cryptocurrencies.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
SEC Denies Fidelity’s Bitcoin Spot ETF
The Securities and Exchange Commission has rejected Fidelity’s Wise Origin Bitcoin Trust, a Bitcoin-based spot ETF. The SEC approved various Bitcoin futures ETFs last year, but the spot ETF has…
Valkyrie Applies for Bitcoin Mining-Focused ETF
Crypto asset manager Valkyrie Investments has applied with the SEC to list a Bitcoin mining-focused exchange-traded fund on the Nasdaq. Valkyrie ETF to Invest in Bitcoin Mining Stocks Valkyrie has…
How to Profit From Market Volatility Using Linear and Inverse Contract…
Perpetual contracts are agreements between buyers and sellers with no specific expiry date, unlike other types of similar contracts such as options or futures. It is for the buyer and…
Grayscale Strikes Back Against SEC’s ETF Rejections
Grayscale has sent a letter to the SEC expressing opposition to the regulator’s repeated rejection of Bitcoin spot ETFs. Grayscale Notes Spot and Futures Discrimination Over the past several months,…