Bitcoin investment giant Grayscale launches ETF in Europe
Crypto investment giant Grayscale is expanding its operations by launching a new crypto-related exchange-traded fund (ETF) in Europe.
Grayscale officially announced its first European ETF, called Grayscale Future of Finance UCITS ETF, on May 16.
The new investment product is now listed on major European stock exchanges, including the London Stock Exchange, Borsa Italiana as well as Deutsche Börse’s Xetra electronic trading platform. Listed under the ticker symbol GFOF, the ETF will also be authorized for sale throughout Europe.
An exciting milestone: Announcing our first European ETF, Grayscale Future of Finance UCITS ETF — listed on the London Stock Exchange (LSE), Borsa Italiana and Deutsche Börse Xetra.
— Grayscale (@Grayscale) May 16, 2022
Launched in partnership with Bloomberg, GFOF UCITS ET tracks the performance of the Bloomberg Grayscale Future of Finance Index. Bloomberg and Grayscale jointly launched the index in January 2022, aiming to track the digital economy, focusing on three main directions like technology, finance and digital assets.
According to the announcement, the new ETF includes companies directly involved in cryptocurrency mining, energy management, and other activities in the digital asset ecosystem.
“Through the GFOF UCITS ETF, European investors now have the opportunity to gain exposure to companies that play a pivotal role in the evolution of the global financial system,” said David LaValle, Global Head of ETFs at Grayscale.
Grayscale has also collaborated with European white label issuer HANetf to create the new investment product. The issuer is known for its cooperation on blockchain ETFs with companies like ETC Group.
Grayscale is one of the largest Bitcoin (BTC) investment firms in the world, providing the Grayscale Bitcoin BTC Trust (GBTC) with $18.3 billion in assets under management. Amid massive market volatility, GBTC registered a significant decline, trading at a discount of nearly 31% on May 13.
The company has aggressively pushed its Bitcoin spot ETF, with CEO Michael Sonnenshein saying Grayscale is bracing for a legal battle with the U.S. Securities and Exchange Commission if its ETF is denied. The company reportedly tried to persuade the SEC that turning the largest BTC fund into an ETF would unlock $8 billion for investors.
Related: Why the World Needs a Bitcoin Spot ETF in the US: 21Shares CEO Explains
The news comes amid growing adoption of crypto and industry-related ETFs globally, with total assets invested in crypto ETFs reaching $16.3 billion in the first quarter of 2022.
21Shares, a leading issuer of crypto ETFs in Europe, recently expanded its investment offering with Layer 1 and Decentralized Finance (DeFi) infrastructure exchange-traded products (ETPs).
Listed on the SIX Swiss Exchange on May 12, the 21Shares Crypto Layer 1 (LAY1) ETP offers investors exposure to the five largest blockchains in the DeFi industry. The 21Shares DeFi 10 Infrastructure ETP (DEFI) will be listed on the same exchange on May 18.