Grayscale Investments and FTSE Russell launch crypto indices

Grayscale Investments, a leading U.S. digital currency asset manager, partnered with FTSE Russell to launch five crypto sector indices, following a recent court victory allowing the creation of a bitcoin-based exchange-traded fund (ETF).

The U.S. Securities and Exchange Commission (SEC) initially rejected Grayscale’s ETF proposal. However, a federal appeals court ruled against the SEC, stating the regulator’s decision was incorrect. While the ruling doesn’t grant immediate ETF approval, it has generated positive sentiment, boosted by similar filings from asset giants BlackRock and Invesco.

A recent insider disclosed that the SEC does not plan to challenge the court ruling, raising hopes for imminent ETF approvals. This optimism has driven Bitcoin’s value to its highest point in nearly a year and a half.

Grayscale’s new FTSE-Grayscale indices will track crypto assets in five categories: currencies, smart contract platforms, financials, consumer and culture, and utilities and services. Grayscale CEO Michael Sonnenshein noted, “Investors seek diversification beyond Bitcoin and Ethereum, turning to Grayscale for insights into this evolving asset class.”

The indices will be reevaluated quarterly, ensuring alignment with the cryptocurrency market’s rapid changes.