Grayscale launches its first European ETF - Robotics Online


Grayscale launches its first European ETF

27 May 2022

  • Grayscale has launched its first European ETF
  • The ETF will track the performance of the Bloomberg Grayscale Future of Finance index
  • The ETF will start trading on May 17

Grayscale, the world’s largest digital asset manager, has announced the launch of an exchange-traded fund (ETF) in Europe. The ETF dubbed Grayscale Future of Finance UCITS ETF will start trading on May 17.

Grayscale unveils first European ETF

This investment product will be available for trading on leading European stock exchanges such as the London Stock Exchange, Borsa Italiana and Xetra. The ETF will trade under the ticker GFOF, and it will be available for trading across European countries.

The ETF was launched following a partnership with Bloomberg, and it will track the performance of the Bloomberg Grayscale Future of Finance index. The index was launched in January this year, and it tracks the technology, finance and digital assets.

The announcement also said that the ETF would include companies participating in innovative sectors such as cryptocurrency mining and energy management. The ETF also tracks firms operating in the crypto space, including Block, Coinbase, PayPal, Canaan, etc.

The global head of ETFs at Grayscale, David LaValle, said, “Through GFOF UCITS ETF, European investors now have the opportunity to receive exposure to the companies that are pivotal to the evolution of the global financial system.”

Grayscale also worked with HANetf, for the release of this investment product. HANetf is known for working with some top players in the crypto space, including ETC Group. A spokesperson from Grayscale noted that the ETF launch was instrumental to the growth of the company and the digital asset sector.

“We believe that the most exciting thing about the digital economy is the fact that we’re still so early in its development… That’s the vision that drove the creation of GFOF, the opportunity to capture value from transformative companies that are, and will be, embracing or building the future of finance and our global digital economy.”

Grayscale’s push for crypto ETFs

Grayscale is one of the largest Bitcoin investment companies globally. Currently, the Grayscale Bitcoin BTC Trust (GBTC) has $18.3 billion in assets under management. Following increased market volatility, GBTC witnessed a massive decline in value, and it traded at a discount of around 31% last week.

Despite the volatility of the crypto market, Grayscale has been pushing for approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC). Last month, Grayscale threatened that it would sue the SEC if its application for a spot Bitcoin ETF was denied. According to the firm, converting GBTC into an ETF would unlock $8 billion.

Cryptocurrencies have witnessed rising demand globally. The total amount of assets invested through cryptocurrency ETFs reached $16.3 billion during the first quarter of this year. Decentralized finance (DeFi) is also gaining a space in the ETF sector, with 21Shares recently listing exchange-traded products (ETPs) focused on Layer 1 and DeFi infrastructure.

The 21Shares Crypto Layer 1 ETP (LAY1) unveiled on May 12 allows investors to get exposure to the five top blockchain networks in the DeFi sector. The 21Shares DeFi 10 Infrastructure ETF (DEFI) will be listed on the SIX Swiss Exchange on May 18.
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