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