In an interview yesterday, Dave Laval, head of ETFs at Grayscale, opened up about the company’s recently launched crypto sector framework.
According to LaValle, the Grayscale Crypto Sectors framework goes beyond investing in just the two largest cryptocurrencies by market capitalization: Bitcoin and Ethereum.
“The Grayscale Crypto Sector Framework is not just about Bitcoin and Ethereum. It is about the entire asset class in development.” Laval said.
The Grayscale Crypto Sector Framework is “simply #bitcoin and #Ethereumthis is about an entire asset class that is developing.” @dave_lavalle in a recent conversation @benzinga.
Details: https://t.co/T4mMp3hP5w pic.twitter.com/AhvsstYpCW
— Grayscale (@Grayscale) January 31, 2024
According to LaValle, the rationale behind this framework is that people are coming to cryptocurrencies in the form of sectors in the same way that traditional investors have become accustomed to the stock market when considering sector allocations. The idea is to make it possible to invest.
“We are really excited about the future and think this is just the beginning. We are very pleased with our engagement and our ability to deliver on our promises to our investors.” he added.
Grayscale Bitcoin ETF
Laval’s comments came in the wake of Grayscale’s conversion of Bitcoin Trust (GBTC) into a spot exchange-traded fund (ETF).
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After the conversion, Grayscale’s Bitcoin fund holds the top position in terms of assets under management (AUM). At the time of writing, Grayscale’s Bitcoin fund has assets worth $21.21 billion, with 24-hour trading volume of $381.9 million.
— James Seyffert (@JSeyff) January 31, 2024
Notably, Grayscale also has a pending application with the SEC to convert Ethereum Trust (ETHE) into a spot ETF. The SEC is expected to decide whether to approve or deny Grayscale’s application this year. However, top analysts estimate that regulators will approve at least one of the multiple Ethereum spot ETF applications in May 2024.
Grayscale Crypto Sector Framework
Recall that Grayscale partnered with FTSE Russell to introduce the much-awaited Crypto Sector Framework in October. After the partnership, Grayscale introduced five crypto sector indexes called “FTSE-Grayscale Indexes.”
Specifically, the product suite tracks the performance of cryptocurrencies across five different categories, including smart contract platforms, currencies, utilities and services, consumer and culture, and finance.
Commenting on the development, Grayscale CEO Michael Sonnenschein said the suite of products will respond to demand from investors who want to explore beyond the two largest crypto assets, BTC and ETH.
“Grayscale Crypto Sector formalizes our expert view of the cryptocurrency landscape and we are excited to partner with FTSE Russell to bring this framework to life in the form of an index. Together, our brands bring the rigor of traditional finance to cryptocurrencies.” he added.