Ben Strack

Though Grayscale Investments is busy with its push to bring a bitcoin ETF to market, the firm’s latest partnership is a bid to attract investors wanting to go beyond spot crypto exposure.



The crypto-focused asset manager has joined forces with index provider FTSE Russell in a bid to build indices across various crypto sectors, the company said Tuesday.&nbsp;



These sectors — currencies; smart contract platforms; financials; consumer and culture; and utilities and services — “formalizes our specialized view of the crypto landscape,” Grayscale CEO Michael Sonnenshein said in a statement.&nbsp;



The partnership is set “to make this framework actionable in the form of indices,” he noted — adding that the two firms would “bring the rigor of traditional finance to crypto.”



Roughly $20 trillion in assets is benchmarked to FTSE Russell indices, according to the company. The index giant had joined forces with Digital Asset Research in October 2021 to introduce indices focused on bitcoin (<a href="https://blockworks.co/price/btc">BTC</a>), ether (<a href="https://blockworks.co/price/eth">ETH</a>) and cardano (<a href="https://blockworks.co/price/ada">ADA</a>).&nbsp;&nbsp;&nbsp;



Grayscale is perhaps best known for its Bitcoin Trust (<a href="https://blockworks.co/tag/gbtc">GBTC</a>) — an investment vehicle with $19.5 billion in assets under management. The US Securities and Exchange Commission denied GBTC’s conversion to an ETF last year, an action the DC Circuit Court of Appeals ruled as an “arbitrary and capricious” decision given the regulator’s approval of bitcoin futures ETFs.



Read more: <a href="https://blockworks.co/news/grayscale-sec-spot-bitcoin-etf">What Grayscale’s win against the SEC actually means</a>



The court <a href="https://blockworks.co/news/grayscale-sec-gbtc-etf">formalized that Grayscale court win</a> on Monday. A firm spokesperson told Blockworks it intends “to move as expeditiously as possible” in its quest to convert GBTC to an ETF.



Grayscale also applied earlier this month <a href="https://blockworks.co/news/grayscale-eth-trust-ethe-filing-vaneck-proshares">to convert its Ethereum Trust (ETHE)</a> to a spot ether ETF.



But the alliance with FTSE Russell is designed to give investors exposure beyond crypto’s two largest assets. The slate of crypto sector indices cover 150 protocols in all and will be reassessed quarterly, Grayscale said.



“With our shared expertise, we have created a sector defining approach to capture innovation that will enable improved decision-making in this growing asset class,” FTSE Russell CEO Fiona Bassett said in a statement. “This fundamental construct offers critical insight to help investors make decisions with clarity and conviction.”



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FTSE100

Grayscale’s link-up with FTSE Russell a bid to boost crypto diversification

Luke Conway

<div id="highlights-block_61e889eac96b6" class="highlights">
 <ul>
 <li>Putin says that &#8220;bloodshed will be fully and wholly&#8221; on the conscience of Ukraine&#8217;s government if Kyiv does not cease military action</li>
 <li>Tension at Ukraine&#8217;s border seems to have increased, leading to further sell-offs</li>
 </ul>
 
</div>



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<h3 class="wp-block-heading">Bitcoin and European markets fall after Putin addresses the Russian people</h3>



European equity markets fell Monday as Russian President Vladimir Putin pushed through plans to recognize the independence of two Russia-backed territories in Ukraine, stoking the threat of an invasion. Cryptocurrencies were unscathed. 



Putin outlined the move in a <a href="https://www.youtube.com/watch?v=W57I2mzAr9c" target="_blank" rel="noreferrer noopener">speech</a>, saying any further bloodshed would be on the Ukraine government's conscience. 



“As for those who captured and are holding on to power in Kyiv, we demand that they immediately cease military action," Putin said. "If not, the complete responsibility for the possibility of a continuation of bloodshed will be fully and wholly on the conscience of the regime ruling the territory of Ukraine."



The prime minister of the United Kingdom, Boris Johnson, <a href="https://www.youtube.com/watch?v=77p5n1ESb6c" target="_blank" rel="noreferrer noopener">condemned</a> the ploy.



"This is plainly in breach of international law. It's a violation, a flagrant violation of the sovereignty and integrity of Ukraine," Johnson said. "It is a repudiation of the Minsk process and&nbsp;the Minsk agreements, and I think it's a very ill omen and a very dark sign."



Putin's speech wasn't helpful to already-volatile and hurting markets. US markets were closed for Presidents' Day, but the UK's FTSE 100 and Germany's DAX both fell. The FTSE 100 dropped by 1.14%, while the DAX fell by almost 2.1%. 


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Bitcoin took a mild hit, starting the day positive, but ending the business day down by 0.25%. Ether remained positive to close up 1.52%. Terra, a top-ten altcoin, seemed to ignore the global uncertainty with an 8.5% daily pump.


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<h3 class="wp-block-heading">Top stories</h3>



<a href="https://cms.blockworks.co/government-crypto-powers-in-spotlight-after-canadian-trucker-protest-is-disbanded/" target="_blank" rel="noreferrer noopener">Story</a>: Government Crypto Powers in Spotlight After Canadian Trucker Protest Is Disbanded



<ul class="wp-block-list"><li>Canadian truckers protesting Covid vaccine mandates raised more than $1 million in bitcoin</li><li>The bitcoin fundraise came after the collective was banned from GoFundMe and another crowdfunding platform</li></ul>



<a href="https://cms.blockworks.co/opensea-scammers-went-phishing-and-caught-over-250-nfts-from-17-users/" target="_blank" rel="noreferrer noopener">Story</a>: OpenSea Scammers Went Phishing and Caught Over 250 NFTs From 17 Users



<ul class="wp-block-list"><li>“This attack did not originate on [OpenSea],” the company’s CEO and co-founder said</li><li>Last week, OpenSea launched a customer service server to mitigate risk of fraudsters pretending to be members of the company’s staff</li></ul>



<a href="https://cms.blockworks.co/with-us-bitcoin-etf-in-limbo-crypto-exchange-traded-products-all-the-rage-in-europe/" target="_blank" rel="noreferrer noopener">Story</a>: With US Bitcoin ETF in Limbo, Crypto Exchange-traded Products All the Rage in Europe



<ul class="wp-block-list"><li>While US investors wait for a physically-backed ETF, exchange-traded products are dominating in Europe</li><li>The ETP structure is often the only option that fits regulatory guidelines, issuers say</li></ul>



<a href="https://cms.blockworks.co/russian-finance-ministry-says-crypto-shouldnt-be-legal-currency/" target="_blank" rel="noreferrer noopener">Story</a>: Russian Finance Ministry Says Crypto Shouldn’t Be Legal Currency



<ul class="wp-block-list"><li>The Russian Ministry of Finance has revealed details of proposed cryptocurrency law</li><li>The announcement comes as tensions between Russia and Ukraine mount</li></ul>



<h3 class="wp-block-heading">Going forward</h3>



Putin's remarks on Kyiv and the two Russian-backed territories in Ukraine seem to have set the stage for more Russian advancements. The potential for conflict appears to have increased, leading to further sell-offs as investors await the next development.



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<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



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<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
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