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The largest digital asset management firm globally, Grayscale, is launching its first exchange-traded fund (ETF). The ETF will track the performance of some of the biggest brands in the sector.
The Grayscale Future of Finance ETF will trade under the ticker GFOF, and it debuted trading on Wednesday.
ETF tracking Bloomberg Future of Finance index
The press release notes that this ETF will track the Bloomberg Grayscale Future of Finance index. This index was launched in January, and it involves 22 firms engaging in the modern digital financial sector. These firms include Block, Coinbase, PayPal, Robinhood and Silvergate Capital.
The fund will include companies from the three pillars that comprise the future of finance. The Financial Foundations pillar will include asset managers, exchanges, brokerage firms and wealth managers. The Technology Solutions pillar is firms offering technology needed to run the digital economy, while the Digital Asset Infrastructure pillar includes companies dealing in mining and other activities that will boost power utility in the digital economy.
“Backed by our proprietary data married with robust research from Bloomberg Intelligence, the Bloomberg Grayscale Future of Finance Index is primed to become the key equity benchmark for our ever-evolving digital economy,” said the Global Head of Multi-Assets Indices at Bloomberg, Dave Gedeon.
The ETF will be distributed by Foreside Fund Services, with the report adding that the index will be rebalanced quarterly. US Bank will be the distributor and service provider for the new fund.
Grayscale’s plans for an ETF
Grayscale currently has around $38 billion in digital assets under management. In October, Grayscale filed for a Bitcoin spot ETF with the US Securities and Exchange Commission. The application is awaiting approval, but the SEC has been reluctant to approve any crypto spot ETFs. According to the regulatory body, crypto ETFs are prone to manipulation.
David LaValle, the Global Head of ETFs at Grayscale Investments, opined that “As we strive to meet investor demand for products that will define the next generation of investment portfolios, we are thrilled to reach this important milestone: a first step in what will be an ongoing strategic expansion of Grayscale’s investment offerings that leverage the ETF wrapper.”
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