Digital currency investment and cryptocurrency asset management firm Grayscale continues to pursue its expanded exchange-traded fund (ETF) plans with the launch of a new crypto-related index offered in collaboration with Bloomberg.
The Future of Finance Index by Grayscale and Bloomberg
According to a press release dated Wednesday, January 19, 2022, Bloomberg and Grayscale have announced the launch of an index called the Bloomberg Grayscale Future of Finance (BGFOF). The index is created to provide investors with an analytical tool to follow the convergence of finance, technology and digital assets in a growing digital economy.
BGFOF will track US and non-US crypto-linked equities across 22 companies selected by Bloomberg intelligence analysts based on its proprietary Theme Basket methodology. The filing document, however, does not list 22 companies, but calls them firms that will play a key role in the future development of the emerging digital economy, ie finance.
The index will not offer direct exposure to digital assets or their derivatives, but will provide investors with indirect exposure to crypto-linked equities tracked by the BGFOF in markets such as crypto trading, blockchain innovation, cryptocurrency mining, virtual asset management, etc.
Commenting on the importance of the index and its role in providing much-needed insight into relevant developments for investors, Des Gedon, Global Head, Multi-Asset Indexes, Bloomberg, said:
“As transformational technologies continue to develop and revolutionize financial markets, we expect investor interest in those innovations to grow exponentially. With the launch of the Bloomberg Grayscale Future of Finance Index, investors now have access to their current positions in the sector. and is a best-in-class benchmark for measuring potential investment performance.
Grayscale’s ETF Ambitions
This index is in line with Grayscales’ recent push into the crypto ETF sector. The world’s largest asset management is trying to convert its bitcoin trust into a bitcoin ETF.
However, as recently reported cryptopotatoThe United States Securities and Exchange Commission (SEC), in mid-December 2020, elected to postpone its decision on the Grayscale Bitcoin ETF. The SEC has so far decided not to approve any physically backed bitcoin ETF applications, which is very upsetting to crypto supporters in the US.
By launching this BGFOF, Grayscale’s index now joins an expanding field of crypto investment tracking products, which includes those offered by Valkyrie and Bitwise, to name a few.
PrimeXBT Special Offer: Use this link and enter code POTATO50 to get 25% off on trading fees.