Grayscale Investments, the world’s largest crypto asset manager, and Bloomberg have partnered to launch a new digital assets-based index.
Dubbed the Bloomberg Grayscale Future of Finance Index (BGFOF), it tracks 22 companies associated with several crypto-linked equities as well other firms in the broader fintech space, according to a press statement released Wednesday.
The index will, however, not directly invest in digital assets or their derivatives but will offer indirect exposure to crypto-linked equities. These crypto-linked equities will be rebalanced on a quarterly basis and cover market segments like exchanges, asset management, mining, and blockchain technology, among others.
According to the release, the basket of companies tracked by BGFOF represent firms that will play a pivotal role in the revenue growth of the emerging digital economy.
While the filing document does not list the companies tracked by the index, BGFOF consists of both U.S. and non-U.S. digital asset-based securities.
Grayscale's Future of Finance index now joins a field of similar products tracking crypto-linked equities. Valkyrie's innovative balance sheet ETF and Bitwise's NFT-tracking index fund both launched in late 2021.
Grayscale’s BGFOF is part of a larger exchange-traded fund (ETF) strategy that includes plans to convert its flagship Bitcoin Trust to a bitcoin ETF.
The United States Securities and Exchange Commission (SEC), however, delayed its decision on the Grayscale bitcoin ETF in December 2021.