Grayscale Investments decided to launch exchange traded fund this Wednesday (2). THE Grayscale Future of Finance ETF It will be the manager’s first ETF, launched in partnership with Bloomberg.
According to the manager, the fund will invest in companies linked to what she calls the “new economy”. Under the code GFOF, this ETF will span at least three different markets. Stocks from asset management companies, cryptocurrency exchanges and traditional exchanges are on the list.
The GFOF was created on the thesis that the digital economy will drive global trade, bring efficiencies and provide access to new sources of capital. In doing so, it will reduce the need for expensive and unnecessary intermediaries,” Grayscale said.
However, these will only be the main markets in which the ETF will invest funds. In parallel, technology solution companies, infrastructure for digital assets and mining will also be part of the ETF.
The GFOF management fee is 0.7% per annum and the fund will make semi-annual dividend payments. Shares of 22 companies are in the ETF’s portfolio, whose share debuted on the New York Stock Exchange at US$ 25. Its equity is US$ 3.24 million.
Manager still wants BTC ETF
Grayscale chose the US Bank as administrator and service provider of the new fund, while Foreside will carry out the distribution of shares. Michael Sonnenshein, CEO of Grayscale, celebrated the launch and partnership with Bloomberg.
“We are proud to announce our first ETF in partnership with Bloomberg. We see this expansion as a strategic part of our business. This product represents the next step in our evolution as an asset manager that helps investors build portfolios that can stand the test of time,” said Sonnenshein.
GFOF is the first Grayscale fund that does not have direct investment in cryptocurrencies. It is also the first to invest in shares of other companies. Created in 2013, the manager was notable for bringing the first institutional cryptocurrency funds to the market.
Currently, the Grayscale BTC Trust (GBTC) is the main fund used by large investors to buy BTC. In fact, the manager has already submitted requests to the US Securities and Exchange Commission (SEC) for it to be transformed into an ETF.
However, the SEC is still reluctant to approve ETFs that buy BTC directly, which has prompted the manager to change its plans. Without access to cryptocurrency on the stock exchange, Grayscale is betting on the appreciation of companies linked to the digital economy.
Dave Gedeon, Bloomberg’s global multi-asset index leader, gave the new fund a positive review. “(The GFOF) is poised to become the primary equity benchmark for our evolving digital economy“, he said.