The digital economy isn’t coming; it’s arrived. We are living through a global, tectonic shift in how consumers interact with financial businesses, which presents phenomenal growth opportunities for investors who capitalize on the future of finance.
In the upcoming webcast, The Digital Economy Is Here. Is Your Portfolio Ready?, David LaValle, managing director, global head of ETFs, Grayscale Investments, will discuss the expansion of the digital economy, as well as an overview of one investment strategy designed to capitalize on the intersection of digital assets, technology, and finance.
Grayscale Investments, the biggest global digital currency asset manager, recently launched the Grayscale Future of Finance ETF (GFOF). The ETF focuses on both the companies and the technologies driving the financial industry forward through innovation.
GFOF tracks the Bloomberg Grayscale Future of Finance Index, an index compiled by Bloomberg Intelligence analysts, and is centered on three pillars that Grayscale believes capture the drivers for the future of global finance. The company believes that the digital economy is going to be a major driver for the development and growth of the global economy going forward, and GFOF works to capture this shift.
Companies within the index fall under one of three pillars: the financial foundations, which includes exchanges, asset managers, brokerages, and wealth managers that utilize the digital economy; technology solutions, which includes companies creating and providing the technology used within the digital economy; and digital asset infrastructure, which encompasses digital asset miners, energy management, and the activities that underpin and power the digital ecosystem as a whole.
With so many crypto equity funds being launched in the last year, it’s a different take on the space that offers investors a different strategy and exposure than those focused on crypto alone.
The digital economy presents opportunities to create better market efficiencies while providing access to new capital avenues, with the added benefit of cost reduction by largely eliminating intermediaries. GFOF isn’t a play on the DeFi space, however, but instead takes a somewhat more traditional approach to investing and utilizes it within the digital asset space.
The ETF does not invest in cryptocurrencies directly or via derivatives, but it can have indirect exposure through the companies it invests in.
Financial advisors who are interested in learning more about the digital economy can register for the Tuesday, April 5 webcast here.