Grayscale Says Its Crypto Sector Framework Isn’t Just About Bitcoin and Ethereum

In an interview yesterday, Grayscale’s Head of ETF Dave LaValle sheds light on the company’s recently launched Crypto Sectors’ framework.

According to LaValle, the Grayscale Crypto Sectors’ framework is beyond investing in only the two largest cryptocurrencies by market capitalization – Bitcoin and Ethereum.

“The Grayscale Crypto Sectors framework is not just about Bitcoin and Ethereum. It is about the entirety of an asset class that is being developed,” LaValle said.

The Grayscale Crypto Sectors framework “is not just about #Bitcoin and #Ethereum, this is about an entirety of an asset class that is being developed,” said @dave_lavalle in a recent conversation with @Benzinga.
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— Grayscale (@Grayscale) January 31, 2024

Per LaValle, the rationale behind the framework is to allow people to invest in crypto in the form of sectors, just like traditional investors have become comfortable in the equity marketplace when considering sector allocations.

“We are really excited about the future and think this is just the beginning. We are super pleased with the engagement we had and the ability to deliver on our promise to our investors,” he added.

Grayscale Bitcoin ETF

LaValle’s comment followed Grayscale’s conversion of its Bitcoin Trust (GBTC) to a spot exchange-traded fund (ETF).

Following the conversion, Grayscale’s Bitcoin fund is in the top position in terms of assets under management (AUM). At press time, Grayscale’s Bitcoin fund has a whopping $21.21 billion worth of assets, with a 24-hour volume of $381.9 million.

Today $GBTC is crushing its peers in the liquidity/volume race. Not even gonna be close

— James Seyffart (@JSeyff) January 31, 2024

Notably, Grayscale also has a pending application with the SEC to convert its Ethereum Trust (ETHE) to a spot ETF. The SEC will decide whether to approve or deny Grayscale’s application this year. However, top analysts speculated that the regulator will approve at least one of the multiple Ethereum spot ETF applications in May 2024.

Grayscale Crypto Sectors Framework

Recall that Grayscale introduced the highly-anticipated crypto sector framework in October in partnership with FTSE Russel. Following the partnership, Grayscale introduced five crypto sector indices, dubbed the “FTSE-Grayscale indices.”

Notably, the suite of products tracks the performance of cryptocurrencies across five distinct categories, such as smart contract platforms, currencies, utilities and services, consumer and culture, and financials.

Commenting on the development, Grayscale CEO Michael Sonnenshein said the suite of products will address investors’ demand to explore beyond the two largest crypto assets- BTC and ETH.

“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,” he added.


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