Crypto and digital asset manager firm Grayscale launched its first Exchange Traded Fund (ETF) in collaboration with Bloomberg. Per a press release, the investment product will trade under the ticker GFOF and will track the Bloomberg Grayscale Future of Finance Index.

Related Reading | Grayscale’s Total Crypto Assets Under Management Tops $60 Billion

Grayscale created this ETF, heavily linked to crypto-based or crypto-related companies in some form, based on the idea which the digital economy will advance to expand. Demand for digital payments and services has seen growth, mostly driven by the COVID-19 pandemic.

Crypto giant Grayscale believes which demand will thrive and will boost global commerce, make the market more efficient, and diversify sources of capital when they become value-efficient. Michael Sonnenshein, CEO at the digital asset manager said the following in their recent announcement:

We’re proud to announce our first ETF in partnership with Bloomberg as we undertake this stcostgic expansion of our business. This product draws upon our historical strengths, throughout the time kicking off the next stage of our evolution as an asset manager which helps investors build portfolios which can stand the test of time.

According to Eric Balchunas, Senior ETF Analyst for Bloomberg Intelligence, Grayscale’s Future of Finance ETF will be comprised of above 20 companies inside the Bloomberg Index. Crypto exchange Coinbase, Robinhood, Argo Blockchain, Hut 8 Mining, Bitfarms, Galaxy Digital Holdings, Bakkt Holdings, and PayPal are some of them.

Crypto Grayscale EB

Source: Eric Balchunas via Twitter

A U.S. bank will administer and opecost as a service provider for the investment product with Foreside, an ETF solutions company, acting as distributor. Dave Gedeon, Global Head of Multi-Asset Indices at Bloomberg, claimed to be excited to collabocost with the crypto giant and added:

Backed by our proprietary data married with robust research from Bloomberg Intelligence, the Bloomberg Grayscale Future of Finance Index is primed to become the key equity benchmark for our ever-evolving digital economy.

Crypto Manager Launches ETFs, But How Are Its Companies Perfabricating?

The Grayscale ETF, per the release, will be supported by three main sectors. First, the investment product will have a financial foundation, focused on crypto exchange and traditional exmoves and brokerages, wealth managers, and other entities “involved in the enablement of the digital economy”.

Second, the ETF will be centered on technology and those entities which “facilitate the digital economy” via data and processing. Finally, the ETF will focus on digital asset infrastructure or companies forthwith related to crypto mining, and those activities which support the digital economy. David LaValle, Global Head of ETFs at Grayscale Investments said:

(…) we are thrilled to reach this deciding milestone: a first step in what will be an ongoing stcostgic expansion of Grayscale’s investment offerings which leverage the ETF wrapper. Through GFOF, investors now have the possibility to receive exposure to the companies which are vital to the evolution of the global financial system.

Grayscale has been trying to evolution into the ETFs sector for several months. The company filed for a Bitcoin spot ETF but is yet to receive an answer from the U.S. Securities and Exshift Commission on its application.

Related Reading | Morgan Stanley Deepens Crypto Exposure Through Grayscale Bitcoin Trust

Some of the companies which will be tracked by this investment product have seen negative performance for several months. PayPal (PYPL) is down 26% in the daily chart, during the time BKKT has seen a 9.76% loss in equivalent timeframes, with Coinbase recording a 6.91% loss.

PYPL Crypto Grayscale

PYPL trends to the downside in the daily chart. Source: PYPLUSD Tradingview