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Grayscale Filed for Blockchain Stocks ETF, Plans on Market Expansion

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Sat, 11/06/2021 - 14:28
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Arman Shirinyan
Grayscale is keeping up with the rapidly developing market by giving its clients exposure to blockchain-related companies
Grayscale Filed for Blockchain Stocks ETF, Plans on Market Expansion
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Grayscale fund management firm has planned the expansion of the market by adding a new product that will track the Bloomberg index via Eric Balchunas. The new fund will be called Futures of Finance and will act as a tool of exposure for clients who are willing to invest in blockchain-related stocks.

The index designed by Bloomberg consists of securities related to the blockchain or digital assets industry. Companies in the index are involved in blockchain development, operations with digital assets and mining.

The fund will use passive management that will only track the index. Such a strategy allows exposure to the fund without paying additional fees and roll costs.

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It is not the company's first step in the expansion of its business. Previously, Grayscale filled an SEC application to convert its currently existing Bitcoin fund (GBTC) into an exchange-traded fund. The possible hearing will take place on Dec. 24.

Grayscale has lost a major portion of its potential clients due to the approval of the first Bitcoin ETF in the U.S. Currently, Grayscale's fund is trading with a negative premium of 20%, which means that the fund is underperforming against its underlying asset: Bitcoin.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.