Grayscale Partners With Bloomberg for its First ETF

Bloomberg has partnered with Grayscale for ETF in a bid to make the underlying index a benchmark for the digital economy.

ETF to Track Various Crypto Domains

The cryptocurrency ETF space just witnessed one of its biggest developments with the involvement of Grayscale Investments.

The crypto asset management firm launched its highly anticipated exchange-traded fund (ETF) named Grayscale Future of Finance (GFOF) ETF on February 20, which tracks the investment performance of the Bloomberg Grayscale Future of Finance Index. The fund has been created on the thesis that the digital economy will have a significant contribution in boosting global commerce, driving market efficiencies, providing access to new pools of capital, and also attempting to eliminate the need for intermediaries in this process. While Foreside will serve as the ETFs distributor, US Bank has been chosen as the administrator and service provider.

“We are excited to partner with Grayscale as they advance their commitment to innovative, investable products, and we believe Bloomberg has built a best-in-class benchmark for the market,” said Dave Gedeon, Global Head of Multi-Asset Indices at Bloomberg, in the official press release from Grayscale. “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.”

Source: Grayscale Product Suite

Even though Bitcoin and Ethereum based ETFs first came about in Canada, crypto ETFs have been gaining even more traction ever since the United States Securities and Exchange Commission (SEC) approved the ProShares Bitcoin futures-based ETF in October 2021. The ETF went on to have one of the biggest ETF openings in the history of ETFs, indicative of the high anticipation of an exchange-traded digital asset fund in the U.S.

Payments & Trading Firms Dominate the ETF Composition

A closer look at the ETF’s composition of the top 10 holdings reveals an inclination towards publicly traded payments and trading stocks, with Coinbase, Paypal, and Robinhood accounting for over 24% of the fund’s weightage. Bloomberg’s index focuses on companies that represent the 3 “Future of Finance” pillars as described below:

Financial Foundations – Asset managers, exchanges, brokerages, and wealth managers that enable the growing digital economy.

Technology Solutions for the digital economy

Digital Asset Infrastructure – Mining, energy management, and other firms that power the digital asset ecosystem.

Source: Official GFOF Page

“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,” said David LaValle, Global Head of ETFs at Grayscale Investments. “Through GFOF, investors now have the opportunity to receive exposure to the companies that are pivotal to the evolution of the global financial system.”

A unit of the ETF currently trades in the $24 range and already has net assets over $3 million in the funds with 125,000 shares outstanding.

What is Grayscale Investments?

Grayscale Investments is a digital asset management company owned by the Digital Currency Group (DCG). The company has assets under management (AUM) of over $55 billion as of 29 October 2021, making it the world’s largest digital assets manager. With various funds and trusts, the company’s product suite cover over 70% of the digital asset economy in terms of exposure.

Find more about Grayscale Investments here:

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