- Grayscale Investments has announced a partnership agreement with FTSE Russell to launch five distinct rules-based indices.
- This comes after the asset manager received approval from the SEC for its spot Ethereum ETF.
Grayscale Investments is in the news again after sealing a strategic partnership agreement with LSEG business and a leading global index provider FTSE Russell as part of an effort to introduce the FTSE Grayscale® Crypto Sector Index Series (“Crypto Sector Indices”).
According to the Grayscale Investments CEO Michael Sonnenshein, there have been several calls from investors about possibilities of gaining exposure on other cryptos other than “the big two”.
Investors have increasingly expressed interest in diversifying beyond crypto’s largest assets, Bitcoin and Ethereum, and many look to Grayscale to better understand this robust, evolving asset class. Grayscale Crypto Sectors formalizes our specialized view of the crypto landscape, and we are thrilled to partner with FTSE Russell to make this framework actionable in the form of indices. Together, our brands will bring the rigor of traditional finance to crypto.
The official release explains the FTSE Grayscale® Crypto Sector Index Series (“Crypto Sector Indices”) as five distinct rules-based indices meant to assist investors in easily categorizing and analyzing the crypto space. However, it is still a “work in progress”. According to the report, tools and structures would be introduced later to ensure that themes, risks, and opportunities of the relevant assets are accurately monitored. In this case, investors can make a rationalized investment decision.
It is also important to note that the five distinct crypto sectors mentioned in this product include Currencies, Smart Contract Platforms, Financials, Consumer and culture, and Utilities and services. It would provide coverage for more than 150 protocols. To be in line with the dynamic nature of the industry, there will be a reassessment every quarter.
More on the Grayscale Investments and FTSE Russell Collaboration
Speaking on this, Fiona Bassett, CEO of FTSE Russell stated that the partnership would go a long way to help investors who seek to rely on clarity and conviction to make informed decisions.
We are delighted to announce our partnership with Grayscale. Trust in financial markets is earned through transparency and governance. With our shared expertise, we have created a sector-defining approach to capture innovation that will enable improved decision-making in this growing asset class. This fundamental construct offers critical insight to help investors make decisions with clarity and conviction.
Over the years, Russell has provided innovative benchmarking, analytics, and data solutions for investors with its index expertise and products patronized by retail and institutional investors. So far, around $20.1 trillion is benchmarked to its indexes.
A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants.
Grayscale, on the other hand, provides the avenue for investors to access the digital world via regulated and “future-forward products”. Its decision to convert its GBTC to a spot Bitcoin Exchange-Traded Fund was earlier rejected by the US Securities and Exchange Commission. However, an appeal court has compelled the Commission to review its decision. This has triggered a massive bull run in the crypto industry with Bitcoin and other altcoins setting new year-to-date all-time highs. Just recently, the SEC approved Grayscale’s spot Ethereum (ETH) exchange-traded fund (ETF).
