Grayscale to launch crypto-sector indices

Grayscale Investments has signed an agreement with FTSE Russell, the London Stock Exchange Group’s subsidiary, to launch indices that track cryptocurrency dynamics by sector.

In conjunction, we are introducing a new partnership with @FTSERussell and debuting the FTSE Grayscale Crypto Sector Index Series (“Crypto Sector Indices”), a set of 5 distinct, rules-based indices capturing the investable crypto market of Grayscale Crypto Sectors.
(3/11) pic.twitter.com/SyH1zFU70h

— Grayscale (@Grayscale) October 24, 2023

As part of the initiative, a new division — Crypto Sector Index Series — was created.

The indices will cover major digital assets, grouped into categories:

• cryptocurrencies for store of value, exchange or payments (Bitcoin, Litecoin and so on);
• smart-contract projects (Ethereum, Solana, Polygon);
• financial-services tokens (Uniswap, Compound, Curve);
• art, gaming and media assets (NFT and other similar sectors);
• platforms oriented toward the traditional market (Chainlink, Filecoin).

The indices cover more than 150 protocols and will be calculated quarterly to reflect the dynamic nature of the crypto asset class.

“Investors are increasingly looking to diversify beyond the largest digital assets — Bitcoin and Ethereum. And many are turning to Grayscale to better understand this robust, evolving asset class,” said Grayscale’s chief executive Michael Sonnenshein.

In late August a granted Grayscale’s petition in its suit against SEC for the denial to convert GBTC into a Bitcoin-ETF. The appellate court ordered the regulator to reconsider its decision.

The GBTC discount narrowed to 16% amid expectations for the launch of a Bitcoin ETF.

Earlier in October, Grayscale’s chief legal officer Craig Salm said that the introduction of a spot Bitcoin fund is more a matter of when, not if.