Grayscale Joins Forces with FTSE Russell to Launch Crypto Indices

<p>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 spot Bitcoin exchange-traded fund (ETF), initially
rejected by the US Securities and Exchange Commission (SEC).</p><p>Dubbed the FTSE-Grayscale indices, the 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.</p><p>Diversification beyond Bitcoin and Ethereum</p><p>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.</p><blockquote><p lang="en" dir="ltr">In conjunction, we are introducing a new partnership with <a href="https://twitter.com/FTSERussell?ref_src=twsrc%5Etfw">@FTSERussell</a> and debuting the FTSE Grayscale Crypto Sector Index Series (“Crypto Sector Indices”), a set of 5 distinct, rules-based indices capturing the investable crypto market of Grayscale Crypto Sectors.(3/11) <a href="https://t.co/SyH1zFU70h">pic.twitter.com/SyH1zFU70h</a></p>— Grayscale (@Grayscale) <a href="https://twitter.com/Grayscale/status/1716795912981463125?ref_src=twsrc%5Etfw">October 24, 2023</a></blockquote><p>In August, the federal appeals court issued a
decision that contradicted the SEC's rejection of Grayscale's spot Bitcoin ETF
application. This action <a href="https://www.financemagnates.com/cryptocurrency/grayscales-court-victory-sparks-push-for-speedy-sec-etf-approval/" target="_blank" rel="follow">brought optimism in the crypto markets</a>. Although the
ruling did not guarantee an instant approval of the ETF, it renewed interest
for a spot <a href="https://www.financemagnates.com/terms/b/bitcoin/">Bitcoin</a> ETF among asset management firms. </p><p>Notably, industry giants such as BlackRock and
Invesco have <a href="https://www.financemagnates.com/cryptocurrency/invesco-and-wisdomtree-join-blackrock-in-pursuit-of-spot-bitcoin-etf-approval/" target="_blank" rel="follow">filed applications</a> for similar investment products, further
signaling the growing acceptance of <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/">cryptocurrencies</a> within the traditional
financial sector.</p><p>SEC Faces Crucial Decision on Spot
Bitcoin ETF</p><p>Following the court ruling, the SEC opted not to
contest the case. With this legal chapter now concluded, it's up to the
regulator to decide whether to approve Grayscale's application or reject it. </p><p>The proposed <a href="https://www.financemagnates.com/tag/bitcoin-etf/" target="_blank" rel="follow">spot Bitcoin ETF</a> would enable investors
to invest in Bitcoin without the necessity of owning
the actual cryptocurrency. The SEC has previously turned down all applications
for spot Bitcoin ETFs, citing concerns over investor protection against
potential market manipulation.</p><p>The cryptocurrency
industry has long been waiting for the approval of a spot Bitcoin ETF in the
United States. Despite numerous applications submitted to the SEC in recent
years, concerns over fraud and market manipulation consistently led to
rejections.</p>

This article was written by Jared Kirui at www.financemagnates.com.