TL;DR Breakdown
- Grayscale’s new ETF is a collection of 22 crypto-forward firms.
- The ETF will be listed and traded on the New York Stock Exchange (NYSE) under the symbol GFOF.
Grayscale is expanding its business into the exchange-traded fund market. The fund comprises equities from significant corporations that have enthusiastically embraced cryptocurrency.
Grayscale is a company that specializes in investment trust and is one of the most well-known crypto asset managers. It has been given the go-ahead to launch an ETF that will begin trading on the NYSE today.
Grayscale launches an ETF
Grayscale Investments is most recognized for providing investors with access to the evolving digital economy. Grayscale’s products feature a Bitcoin Trust, Ethereum Trust, and Digital Large Cap Fund. Notably, it has expanded into the traditional stock market on Wednesday, February 2nd, 2022. Officially, it has debuted in the $7 trillion ETF industry.
The fund will track the Bloomberg Grayscale Future of Finance index. It’s not a bitcoin fund, but it is a crypto-infrastructure ETF that bundles stocks that are already publicly traded. Firms such as PayPal, Block Coinbase, and Silvergate are included in the new fund.
The Grayscale Investments LLC’s Future of Finance ETF (GFOF), designed to become a “world-class ETF issuer,” aims to revolutionize the way investors view, trade, and interact with cryptocurrencies focused companies.
The company is working to satisfy investor demand for exposure to the crypto space. According to the Grayscale Investment Trust, it has $38.2 billion of assets under management.
The index, which will include payments, exchange, asset management, hardware, blockchain/tech, and mining firms, will be rebalanced every three months.
Grayscale expansion into the market
Through ETFs, investors can buy stocks in the S&P 500 for a low management fee. The Grayscale exchange-traded fund is thus a one-stop shop for stock investors.
The launch comes as Grayscale is engaged in a bitter legal battle with the US Securities and Exchange Commission. The SEC has repeatedly denied Grayscale’s spot market Bitcoin ETF application.
Exchange-traded funds continue to be rejected by the SEC, but GFOF’s launch may suggest Grayscale has gained a toehold. With the attempt to track crypto-linked equities, several funds have been established. However, they have dipped in recent months as Bitcoin’s 44% plunge from its all-time high in November.
With its first tracking equity launch, Grayscale expands its product range to include mainstream markets. This will give investors exposure to a broader range of investments. The fund will be passively managed and charged a fee of 0.7 percent, according to GFOF’s announcement.
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