Grayscale launches new ETF of crypto-exposed companies

What

Grayscale has launched an ETF of Bitcoin-exposed companies

Why

The asset management company aims to provide the most concentrated and diversified equity exposure in the space

What next

Their ETF is trading on the New York Stock Exchange under the ticker symbol GFOF

The story

Grayscale, a cryptocurrency and digital asset management company, has launched a new ETF of Bitcoin-exposed companies, including PayPal and Silvergate Capital. This is a step away from its crypto-centric offerings like purchasing shares in Bitcoin and other cryptocurrencies.

“What we’re doing here is really defining what the digital economy is as opposed to replicating Bitcoin in the form of an equity ETF,” said Grayscale’s head of ETFs, Dave LaValle.

Instead, Grayscale’s latest ETF will be focussing on companies that are transforming the landscape for digital assets.

With its ticker symbol GFOF, the ETF is available on the New York Stock Exchange Arca and will track the Bloomberg Grayscale Future of Finance Index. The index consists of asset managers, exchanges, brokerages and wealth managers involved in the digital economy.

Some of the other companies in the benchmark include technology providers focused on data and processing, as well as mining and energy companies.

Bloomberg’s global head of multi-asset indices at Bloomberg said GFOF is among the most concentrated and diversified equity exposure to the space.

“It does not provide exposure to companies that have low exposure to the digital economy or companies that simply hold cryptocurrencies on their balance sheet,” Gedeon told Blockworks.

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