Grayscale world's biggest crypto fund operator makes Europe debut

Grayscale Investment LLC, the operator of the world's biggest crypto fund, is making its European debut with an exchange-traded fund tracking a basket of digital asset companies, rather than a product tied to the price of Bitcoin itself.

The fund manager will launch its Future of Finance UCITS ETF (ticker GFOF) on the London Stock Exchange, Borsa Italiana and Deutsche Börse Xetra on Monday, in collaboration with white-label ETF platform HANetf.

First launched in the US in February, GFOF tracks the investment performance of the $443 billion Bloomberg Grayscale Future of Finance index, with constituents including Robinhood Markets Inc, Block Inc and Coinbase Global Inc.

Grayscale is currently lobbying US regulators for permission to convert its $19 billion Bitcoin Trust (ticker GBTC) into an ETF that would directly track the price of Bitcoin. Spot Bitcoin ETFs have yet to be approved in the US.

The firm enters a competitive market in Europe, where spot crypto exchange-traded products from rivals including CoinShares International Ltd and 21Shares AG having been available on local bourses for several years.

GBTC shares hit a record discount to the price of Bitcoin on Tuesday following a meeting with the Securities and Exchange Commission about its ETF application, according to data compiled by Bloomberg, while the US-listed GFOF ETF recorded a three-month return of -42.6% as of May 13.