Grayscale Investments, a digital currency asset management, has developed the Grayscale Future of Finance ETF collaboration with Bloomberg. Grayscale launched this ETF based on the belief that the digital economy would grow.
Grayscale’s First Exchange-Traded Fund
It is highly tied to crypto-based or crypto-related enterprises in some way. The COVID-19 epidemic has fueled an increase in demand for digital payments and services.
Grayscale’s Future of Finance ETF, according to Eric Balchunas, Senior ETF Analyst for Bloomberg Intelligence, will include over 20 businesses from the Bloomberg Index. Coinbase, Robinhood, Argo Blockchain, Hut 8 Mining, Bitfarms, Galaxy Digital Holdings, Bakkt Holdings, and PayPal are just a few of the companies involved.
Grayscale’s Future of Finance index now joins a field of similar products tracking crypto-linked equities. Valkyrie’s innovative balance sheet ETF and Bitwise’s NFT-tracking index fund launched in late 2021. Grayscale’s BGFOF is part of a larger exchange-traded fund (ETF) strategy that plans to convert its flagship Bitcoin Trust to a bitcoin ETF. However, the United States Securities and Exchange Commission (SEC) delayed its decision on the Grayscale bitcoin ETF in December 2021.
22 Assets Without A Microstrategy
As of February 2, the fund has 22 holdings. Paypal Holdings, Coinbase Global, Silvergate Capital, Robinhood Markets, Block, Plus500, Argo Blockchain, Hut 8 Mining, Bitfarms, and Hive Blockchain Technologies rank first and second, respectively.
Grayscale has chosen the U.S. Bank as the ETF’s administrator and service provider. The ETF will be distributed through Foreside. The new ETF product is underpinned by proprietary data and “strong analysis from Bloomberg Intelligence,” according to Dave Gedeon, global head of Multi-Asset Indices at Bloomberg.
Grayscale is now managing $34.6 billion in assets (AUM). The firm provides 16 different cryptocurrency investing options. Grayscale Bitcoin Trust (GBTC) is the biggest, with $24.8 billion in assets. The Solana trust, established in November of last year, is the most recent addition.