Grayscale fund management firm intends to expand the market by introducing a new product that will track the Bloomberg index, according to Eric Balchunas. The new fund, Futures of Finance, will serve as an exposure tool for clients interested in investing in blockchain-related stocks.
Bloomberg’s index is made up of securities related to the blockchain or digital assets industry. Companies in the index are involved in blockchain development, digital asset operations, and mining.
Interesting, Grayscale filing for a "Future of Finance ETF" (GFOF) which will track blockchain type stocks it looks like.. pic.twitter.com/Rp3v38xRYd
— Eric Balchunas (@EricBalchunas) November 5, 2021
The fund will employ passive management, meaning that it will only track the index. This strategy allows for exposure to the fund while avoiding additional fees and roll costs.
It is not the company’s first step in expanding its operations. Grayscale previously filed an SEC application to convert its existing Bitcoin fund (GBTC) into an exchange-traded fund. The possible hearing will be held on December 24.
Grayscale has lost a significant portion of its potential clients as a result of the approval of the first Bitcoin ETF in the United States. Grayscale’s fund is currently trading with a negative premium of 20%, indicating that it is underperforming its underlying asset: Bitcoin.