Grayscale has launched its first publicly traded fund in three major European markets, offering investors exposure to companies linked to the crypto world and the new digital economy.
The new ETF from Grayscale Investments, the largest digital asset fund manager, will track the performance of companies that sit at the intersection of finance, technology and digital assets, the investment firm said.
Through its new financial instrument, called “Grayscale Future of Finance UCITS ETF”, Grayscale wants to provide European investors with a vision focused on the digital economy. By offering exposure to companies related to technology and the crypto world, the firm seeks to expand its products and boost innovation, to continue driving the development and growth of the economy at a global level.
Grayscale’s GFOF will begin trading today on the London Stock Exchange, Deutsche Börse and Borsa Italiana. This ETF will be launched as a UCITS (Undertakings for the Collective Investment of Transferable Securities) fund, making it available to interested investors across Europe.
Grayscale Investments, a subsidiary of Digital Currency Group, a Connecticut-based venture capital firm focused on digital markets, is also seeking to address growing demand from its institutional and retail investors for digital products such as cryptocurrencies.
According to CaixaBank ResearchCryptocurrencies, as alternative payment systems, have become an innovation, so their adoption, use and demand have grown exponentially in recent years.
An ETF to invest in the future of finance
Grayscale Investments CEO Michael Sonnenshein said the new fund will help investors diversify their investment portfolios, while the firm will be able to further expand its business.
The digital asset manager, which holds over $25.000 billion in cryptocurrencies under management today, has emerged as a leader in the crypto industry. The company has over a dozen crypto-focused funds, allowing investors to maintain exposure to this new asset class.
On the other hand, Grayscale's global ETF director, David LaValle, stated that through the new ETF, European investors can access companies that are fundamental to the evolution of the global financial system and that are part of the new digital economy, being directly or indirectly related to cryptocurrencies.
Among the crypto companies that the new ETF will track are: Argo Blockchain, Paypal, Coinbase and Block (formerly Square).
Currently, the European market has around 73 products and investment instruments that offer exposure to cryptocurrencies.
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GBTC as a US Spot Bitcoin ETF
Last month, Sonnenshein had revealed plans to launch an exchange-traded fund in the European market. However, his biggest wish is to turn his Bitcoin investment fund, the “Grayscale Bitcoin Trust (GBTC)” into a cash ETF regulated in the United States.
Grayscale, which had a private meeting with the Securities and Exchange Commission (SEC) last week, is still waiting for the US regulator's response to launch its next ETF. If it receives the authorization from the financial regulator, this would be the first ETF to track the price of Bitcoin in the spot market on US soil.
Last year, the SEC gave the green light to several Bitcoin-based investment funds that track the cryptocurrency indirectly, through futures derivatives.
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