Hassan Maishera
TL;DR
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Grayscale and FTSE Russell have entered into a strategic partnership to boost their involvement in the crypto space.
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There will be five benchmarks to track the performance of different categories of crypto assets.
Grayscale And FTSE Russell Enters Into A Strategic Partnership
Cryptocurrency asset management firm Grayscale Investments has entered into a strategic partnership with FTSE Russell – the index division of London Stock Exchange parent LSE Group.
In a press release issued by the companies on Tuesday, they stated that the partnership will see them create a new crypto indexes business. While commenting on this latest development, Grayscale Investments CEO Michael Sonnenshein said,
“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 two companies revealed five indexes that would track the performance of different cryptocurrency sectors. The crypto sectors include currencies, smart contract platforms, financials, consumer and culture, and utilities and services.
Over time, various tools and structures will be created to monitor themes, risks, and opportunities of the asset class, advancing more informed investment decisions.
Fiona Bassett, CEO of FTSE Russell, added that,
“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.”
They further explained that some of the indexes serve as the basis for ETFs. This latest development comes as Grayscale looks to convert its inaugural Grayscale Bitcoin Trust (GBTC) into an ETF.
