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The world’s largest digital asset manager Grayscale Investments’ plan of expanding its footprint in the European market got a new lease of life as it announced its first European ETF called Grayscale Future of Finance UCITS ETF [ticker: GFOF].
The newly launched ETF is slated to be listed on the London Stock Exchange [LSE}, Borsa Italiana, and Deutsche Börse Xetra will also be “passported for sale” across Europe.
For those unfamiliar, Passporting allows a firm registered in the European Economic Area [EEA] to set shop in any other EEA state without further authorization.
Coming back to the press release, the investment vehicle is designed to offer investors exposure to firms across domains like finance, technology, and digital assets – as well as firms shaping the digital economy, all through the familiar ETF wrapper.
In February 2022, Grayscale listed an ETF in the United States that tracks the investment performance of the Bloomberg Grayscale Future of Finance Index.
Speaking on the historic launch, Grayscale Investments CEO Michael Sonnenshein stated,
We announced our first ETF earlier this year in partnership with Bloomberg as part of the expansion of our business. With growing global demand from both institutional and individual investors for Grayscale products, we’re thrilled to be expanding our offering in Europe through the UCITS wrapper.
“This product draws upon our historical strengths while furthering our evolution as an asset manager that helps investors build portfolios that can stand the test of time. GFOF UCITS ETF is the natural next step in our global strategic journey,” he added.
The investment firm’s plan to enter Europe’s crypto market was the result of a number of meetings held with local partners, Sonnenshein said.
Grayscale’s Tussle With SEC
The European crypto fund market has become more competitive in recent months, with the arrival of several rival exchange-traded products [ETP] being listed in Switzerland, Germany, and elsewhere by firms such as 21Shares.
As of March, 73 crypto ETPs had been granted approval in Europe, with a total of $7 billion in assets.
Apart from making a mark in this market, Grayscale is also seeking to convert its bitcoin trust into an ETF in the U.S. but has been frustrated by the Securities and Exchange Commission [SEC].
The U.S. markets regulator has so far green signaled 4 BTC future ETFs but none that invest in the crypto directly.