Grayscale Investments announces First European ETF

Key Takeaways

  • The Grayscale Future of Finance UCITS ETF will be listed on the London Stock Exchange, the Deutsche Börse and Borsa Italiana, 
  • Trading in the ETF is set to start on May 17.

Grayscale Investments, one of the leading digital currency asset manager, announced its first exchange-traded fund (ETF) in Europe. The Grayscale Future of Finance UCITS ETF (GFOF) will be listed on the London Stock Exchange, Borsa Italiana, the Deutsche Börse and will be available to investors across Europe. A company spokesperson said that trading in the ETF is set to start on May 17.

GFOF UCITS ETF will track the investment performance of the Bloomberg Grayscale Future of Finance Index. Bloomberg Grayscale Future of Finance Index was launched earlier this year and tracks the performance of financial services and tech companies in the digital economy, including PayPal (PYPL), Coinbase Global (COIN), Block (SQ), Robinhood Markets (HOOD), Argo Blockchain (ARB), among others. The new Index plans to offer investors exposure to companies at the intersection of finance, tech, and digital assets.

In February, Grayscale launched an ETF in New York to track the same Index. According to a tracker on Grayscale’s official website, it was trading at approximately $14.69 on March 13, down from nearly $26 on February 1. Grayscale Chief Executive Officer Michael Sonnenshein had earlier said in April that the company wanted to enter the European crypto fund market, where there are already more than 70 exchange-traded products with a total of USD 7 billion in crypto and related assets.

Michael Sonnenshein, commenting on the new development, said” We announced our first ETF earlier this year in partnership with Bloomberg as part of the expansion of our business. With growing global demand from both institutional and individual investors for Grayscale products, we’re thrilled to be expanding our offering in Europe through the UCITS wrapper”.

He further added that the GFOF UCITS ETF is the natural next step in their global strategic journey.” Through GFOF UCITS ETF, European investors have the opportunity to now receive exposure to the companies that are pivotal to the evolution of the global financial system,” said David LaValle, who holds the post of the Global Head of ETFs at Grayscale Investments.This development comes at a time when investors are currently abandoning riskier assets over fears about high inflation and major central banks tightening policy. Bitcoin last week plunged to as low as $25,401.05, making headlines and wiping out its gains from 2021.

Saniya Raahath
Saniya Raahath

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