Wednesday, October 5, 2022

Grayscale Debuts its First European ETF Product

The biggest virtual assets, most especially Bitcoin (BTC) manager in the world, Grayscale Investments has just launched its first cryptocurrency-backed exchange-traded fund (ETF) product dubbed the Grayscale Future of Finance UCITS.

The fund will trade under the GFOF ticker symbol and will be available to its European subscribers. According to the firm, the new product will be listed on Borsa Italiana, London Stock Exchange, and Deutsche Börse Xetra.

In February, Grayscale Investments rolled out its first ETF, also the GFOF product in the United States, specifically listed on the New York Stock Exchange (NYSE). The listing now hosts 12 publicly traded companies.

The new investment product is launched in collaboration with Bloomberg. The ETF is the first Exchange-traded Fund that tracks the performance of the Bloomberg Grayscale Future of Finance Index (BGFOFN) which comprises industries that cut across Financial Foundations, Virtual Asset Infrastructure, and Technology Solutions.

Commenting on the innovative move, the CEO of Grayscale Investments, Michael Sonnenshein said, with the ever-increasing demands from investors across various institutions in the world for the investment product of Grayscale, the firm is excited to introduce its new products. He added that the new products facilitate the evolution of the firm as one that aids its investors in building lasting “portfolios.”

ETFs And Government Regulation Concerns

While bitcoin-backed exchange-traded funds are an asset class that interests investors, owing to the fact that it allows for trading without directly investing in crypto assets. The US SEC has often slowed down in approving the investment class.

There are often concerns by the SEC about the vulnerability of digital assets-backed investments to fraudulent activities and price volatility and manipulations, which has fueled its carefulness in cutting down excesses around the asset class. 

In March, the Securities and Exchange Commission postponed the approval of BTC-ETF proposals of WisdomTree Investment Inc. and One River Asset Management Holdings in separate filings.

CNBC also reported that Grayscale is currently stalling the SEC about approving the conversion of its crypto product,  Grayscale Bitcoin Trust, into a spotlight BTC exchange-traded ETF. The decision of the regulator will be announced on July 6.

Israel Love
Israel Love is a passionate writer that enjoys educating and inspiring people through his writing. This passion fuels the desire to simplify the complexities in the blockchain ecosystem, by providing viable information about the crypto space in such a way that makes it easy for anyone to understand. Israel love also has interests in Human Resource Management as he is a trained expert in HR.

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