Grayscale launches ETF based on shares of bitcoin- and crypto-focused companies

Grayscale Investments, the digital asset manager, has launched an exchange-traded fund (ETF) based on the shares of companies that have added bitcoin and other cryptocurrencies to their product lines.

Ready for something new? Meet $GFOF, the first ETF from Grayscale Investments. https://t.co/2c0Ot0Rne7 pic.twitter.com/ZLHf23xkWj

— Grayscale (@Grayscale) February 2, 2022

Future of Finance ETF under the ticker GFOF has been listed on the New York Stock Exchange. Grayscale Investments filed the application in November 2021.

The ETF’s holdings were augmented by 22 stocks. The largest weights were Silvergate Capital (8.38%), PayPal Holdings (8.37%), Coinbase Global (8.24%), Block (7.85%), and Robinhood Markets (7.71%). 

Securities of firms such as MicroStrategy and Tesla were not included in the GFOF basket, as they have limited themselves to cryptocurrencies as a payment method or reserve asset.

62.3% of the ETF’s assets under management are invested in financial-institution stocks, with the remainder allocated to digital-asset infrastructure solutions.

forecast growth in the capacity of the digital-asset payments market to $11.3 trillion by 2026.

Back in December 2021 the SEC postponed the decision on Grayscale’s application to launch a spot Bitcoin ETF. Grayscale filed an application to convert the digital-gold-backed trust into an ETF based on the first cryptocurrency on 19 October.

In late October the regulator approved applications to launch Bitcoin futures ETFs from VanEck and Valkyrie Investments, as well as ProShares. Grayscale Investments called the SEC’s decisions “arbitrary and improper.”

Earlier, the Commission approved Volt Equity’s application to launch an ETF on a basket of companies that are revolutionising the Bitcoin industry.

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