Grayscale Investments has partnered with FTSE
Russell to unveil five crypto sector indices. This step followed a recent
federal appeals court ruling that reignited hopes for the approval of
Grayscale’s exchange-traded fund (ETF) based on spot bitcoin, initially
rejected by the U.S. Securities and Exchange Commission (SEC).
Dubbed the FTSE-Grayscale indices, the comprehensive
suite of crypto indices tracks the performance of crypto assets across five
distinct categories: currencies, smart contract platforms, financials, consumer
and culture, and utilities and services, according to a report by Reuters.
This diversification move addresses the growing
demand by investors to explore beyond the most prominent cryptocurrencies, such
as Bitcoin and Ethereum. Grayscale’s CEO, Michael Sonnenshein, said that
investors have increasingly sought ways to diversify their portfolios within
the cryptocurrency market.
In August, the federal appeals court issued a
decision that contradicted the SEC’s rejection of Grayscale’s Bitcoin ETF
application. This action brought optimism in the crypto markets. Although the
ruling did not guarantee an instant approval of the ETF, it renewed interest
for a spot Bitcoin ETF among asset management firms.
Notably, industry giants such as BlackRock and
Invesco have filed applications for similar investment products, further
signaling the growing acceptance of
