Grayscale and FTSE Russell collaborate on a new index product, marking a significant move in crypto market tracking.
In yesterday’s crypto news, Grayscale and FTSE Russell, a division of the London Stock Exchange, announced the debut of a new index product that tracks cryptocurrencies.
Crypto News: New and grayscale indices follow cryptocurrencies according to application cases
This new crypto index product, named the Crypto Sector Index Series, was introduced by Grayscale in collaboration with FTSE Russel, a division of the London Stock Exchange.
The crypto-asset management organisation made the decision to launch this new business endeavour into the crypto index market with this product, which uses use cases to track the price of various groups of digital assets.
This is how FTSE Russell characterises the new offering:
The FTSE Grayscale Crypto Sector Index Series offers you a new way of thinking about the digital asset market, providing a comprehensive framework that allows you to measure the performance of the expanding crypto universe.
The index series seeks to bring clarity to this rapidly evolving asset class by identifying five distinct sectors that can be used as a roadmap to navigate the digital asset universe.
In actuality, the Crypto Sector Index Series’ five groupings are as follows:
- cryptocurrencies (like bitcoin and litecoin) that serve as a store of value or a means of trade;
- smart contract-based platforms (like Ether, Solana, and Polygon);
- tokens (such uniswap, compound, and curve) that stand for financial services;
- tokens for creative or gaming web3 products (like NFT)
- Tokens that stand in for actual projects (like Filecoin and Chainlink)
Lastly, the indices will employ the square root of each cryptocurrency’s market capitalization to weight the assets within each bucket.
Investors will be able to have a more diversified exposure and the most heavily capitalised cryptocurrencies, like BTC, won’t be overweighted overall.
Greyscale: Positive news for bitcoin ETFs and a new crypto index product
Grayscale looks to have officially formalised its victory over the SEC in the lawsuit pertaining to its proposal to transform GBTC into a spot bitcoin ETF, coinciding with the introduction of its new crypto index product.
The Grayscale Bitcoin Trust (GBTC), which has over 621,000 BTC in it, is the largest bitcoin fund in the world. It is managed and established by Grayscale. With 158,000 BTC, MicroStrategy is likewise smaller than the GBTC.
The GBTC is an OTC-only fund that mimics the price movement of the underlying asset; it is not listed on conventional exchanges. It is a collateralized fund.
Grayscale has requested authorization from the US SEC to transform its GBTC into a fully functional spot bitcoin ETF. But once the request was turned down by the regulator, Grayscale sued the SEC.
The most recent development is that the Court of Appeals decided that the SEC lacked adequate justification to block the application, and as a result, it was denied. How the SEC moves forward is still to be seen.
Predicting the price of bitcoin without using numbers
Grayscale released his estimate for the price of bitcoin (BTC) earlier this month, but he did not include any figures.
Given that the price of the “queen of cryptos” is still relatively low in relation to the world’s tangible reserves, like gold, his lecture is predicated on the potential benefits of a price increase.
In actuality, Grayscale indicates that if bitcoin is able to partially replace gold in the financial markets, there will be ample space for it to expand.
Global investment bank Morgan Stanley has also lately commented on bitcoin price projections. Finally without getting into specifics, expert Denny Galindo seems to be saying that cryptocurrency winter may be coming to an end and that cryptocurrency spring is most likely approaching.
