Grayscale’s first ETF product tracks Bloomberg Grayscale Future of Finance Index and selects U.S. Bank as Service Provider
New York- Grayscale Investments®, the world’s largest digital currency asset manager, today announced that it has launched its first ETF, Grayscale® Future of Finance ETF (symbol: GFOF), the first equity ETF to track the investment performance of the Bloomberg Grayscale Future of Finance Index.
“While Grayscale has established itself as a global leader in digital currency investing, the future of finance demands a much broader mandate,” said Grayscale Investments CEO Michael Sonnenshein. “We’re proud to announce our first ETF in partnership with Bloomberg as we undertake this strategic expansion of our business. This product draws upon our historical strengths, while kicking off the next stage of our evolution as an asset manager that helps investors build portfolios that can stand the test of time.”
GFOF was built upon the thesis that the digital economy will boost global commerce, drive market efficiencies, and provide access to new pools of capital, while reducing the need for costly and cumbersome intermediaries.
“We are excited to partner with Grayscale as they advance their commitment to innovative, investable products, and we believe Bloomberg has built a best-in-class benchmark for the market,” said Dave Gedeon, Global Head of Multi-Asset Indices at Bloomberg. “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.”
The Bloomberg Grayscale Future of Finance Index comprises companies representing three “Future of Finance” pillars:
- Financial Foundations – asset managers, exchanges, brokerages, and wealth managers involved in the enablement of the digital economy
- Technology Solutions – organizations providing the technology to facilitate the digital economy through data and processing
- Digital Asset Infrastructure – includes companies directly involved in mining, energy management, and activities that power the digital asset ecosystem
“As we strive to meet investor demand for products that will define the next generation of investment portfolios, we are thrilled to reach this important milestone: a first step in what will be an ongoing strategic expansion of Grayscale’s investment offerings that leverage the ETF wrapper,” said David LaValle, Global Head of ETFs at Grayscale Investments. “Through GFOF, investors now have the opportunity to receive exposure to the companies that are pivotal to the evolution of the global financial system.”
Grayscale has selected U.S. Bank as the administrator and service provider for the ETF. Foreside will serve as the ETF’s distributor.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (833) 903-2211 or visit our website at www.grayscale.com/gfof. Read the prospectus or summary prospectus carefully before investing.
Investments involve risk. Principal loss is possible. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value. The fund is new and has limited operating history to judge.
Fund Risks: The Fund is non-diversified therefore Fund’s shares may rise and fall more than the value of shares of a fund that invests in securities of companies in a broader range of industries. The fund is not actively managed. Investments in foreign securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. These risks are magnified in emerging markets. Investments made in small to mid-capitalization companies are subject to greater risks than large company stocks due to limited resources and inventory as well as more sensitive to adverse conditions.
The Fund will not invest in digital assets directly or through the use of derivatives. The Fund also will not invest in initial coin offerings. The Fund may, however, have indirect exposure to digital assets by virtue of its investments in companies that use one or more digital assets as part of their business activities or that hold digital assets as proprietary investments. Because the Fund will not invest directly in any digital assets, it will not track price movements of any digital assets.
Future of Finance Companies rely heavily on the success of the digital currency industry, the development and acceptance of which is subject to a variety of factors that are difficult to evaluate. These companies may be subject to theft, loss or destruction of cryptographic keys (required to access a user’s account when transacting on blockchain). Blockchain technology is new and many of its uses may be untested. The development and acceptance of competing platforms or technologies may cause consumers or investors to use an alternative to blockchains. Digital assets that are represented on a blockchain and trade on a digital asset exchange may not necessarily benefit from viable trading markets. Digital commodities and their associated platforms are largely unregulated, and the regulatory environment is rapidly evolving. Companies that are developing financial technologies that seek to disrupt or displace established financial institutions generally face competition from much larger and more established firms.
“Future of finance” is defined as the intersection of finance, technology and digital assets.
GFOF is distributed by Foreside Fund Services, LLC and Grayscale Advisors, LLC is the adviser.