Grayscale Bypasses SEC Pushbacks, Debuts First Ever ETF

The world’s largest digital asset manager with over $36.5 billion in assets under management (AUM), has launched its first exchange-traded fund (ETF).

The Grayscale Future of Finance (GFOF) is an equity ETF that tracks the performance of the Bloomberg Grayscale Future of Finance Index. While the ETF launched early last week, Grayscale saw its proposal to convert its Grayscale Bitcoin Trust Fund (GBTC) delayed later in the week by the SEC.

Digital assets manager Grayscale launches its first ETF

In a press release last Grayscale Investments, the biggest digital assets manager globally, announced that it had launched its first exchange-traded fund (ETF) in partnership with Bloomberg. The Grayscale Future of Finance ETF with ticker symbol GFOF will track the investment performance of Bloomberg’s Grayscale Future of Finance Index.

The index the ETF tracks comprise the shares of companies that operate as asset managers, exchanges, brokerages, and wealth managers in the digital economy. Companies that provide technology solutions as well as companies that provide digital assets infrastructure such as energy and mining.

The top holdings in the ETF include Silvergate Capital, PayPal, Coinbase, Block, and Robinhood. Notably, the ETF does not give direct exposure to cryptocurrencies. The banking partner of the ETF was also named to be U.S. Bank, while Foreside will serve as the distributor of the ETF.

Grayscale is still fighting to bring a Bitcoin spot-settled ETF to market

Commenting on the launch of the ETF, Michael Sonnenshein, the CEO of Grayscale Investments said that the ETF would broaden the mandate of the firm. He added that Grayscale was proud to have been able to introduce the ETF to the market.

 This product draws upon our historical strengths, while kicking off the next stage of our evolution as an asset manager that helps investors build portfolios that can stand the test of time, Sonnenshein said.

For his part, Dave Gedeon, global head of multi-asset indices at Bloomberg, commented that GFOF would be the best in class ETF in the market.

Shortly after the launch last week, Grayscale got word from the SEC that its application to convert its GBTC fund to a Bitcoin spot settled ETF had to be delayed. The SEC has commenced proceedings to get the public’s comments on if the ETF should be approved or not, citing that on its part, the commission still had misgivings for the ETFs ability to protect consumers.