GlobalX Joins Growing List Of US Bitcoin ETF Hopes

Global X Digital Assets, a fund manager with $ 31 billion in assets under management (AUM), is the last hope to apply for a Bitcoin ETF with the US Securities and Exchange Commission.

GlobalX is a branch of Seoul-based Mirae Asset Global Investments, a global investment manager with more than $ 560 billion in AUM.

A Bitcoin ETF, or exchange-traded fund, is designed to track the Price of Bitcoin, ensuring institutional investors easy access to the underlying asset without the need for them to physically hold the cryptocurrency.

If approved, the proposed Global X Bitcoin Trust, a statutory trust incorporated in Delaware on July 13, 2021, would be traded on the Cboe BZX exchange, with the Bank of New York Mellon appointed as the trustee of the trust.

According to a request filed on July 21, “the investment objective of the trust is to reflect the trend in the price of Bitcoin minus the expenses of the operations of the trust.”

Trust will not seek to reflect the performance of any benchmark or index ”. read the deposit.

GlobalX said a ticker symbol for the proposed trust will be announced prior to the start of trading; It has not yet revealed the name of the custodian responsible for the custody of all Bitcoin owned by the Trust.

company disclosed that the custodian is a limited-purpose trust company licensed to provide digital asset custody services in New York State.

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GlobalX currently offers a total of 84 ETFs embracing disruptive technology, equity income, commodities and hard-to-reach emerging markets.

Earlier this month, the New York-based company launched the Global X Blockchain ETF (BKCH), which is listed on the Nasdaq and “seeks to invest in companies positioned to benefit from the increased adoption of blockchain technology.” se include “companies in the industry of digital asset mining, blockchain and digital asset transactions, blockchain applications, blockchain and digital asset hardware, and integration of blockchain and digital assets.”

US is dragging its heels on the Bitcoin ETF

Although the first application for a US Bitcoin ETF was filed in 2013, the SEC has yet to approve the applications that passed through its desk. Since then, companies like Canada and Brazil have launched Bitcoin ETFs, while the SEC has continued to hesitate, citing Bitcoin’s volatility and the risk of market manipulation.

Speaking at the cryptocurrency conference B Word earlier this week, SEC Commissioner Hester Peirce discussed that a Bitcoin ETF should have already been approved, noting that ‘I never imagined that I would be in this situation where we would not have approved one still and other countries are advancing ».

Earlier this summer, the SEC postponed decisions on two Bitcoin ETFs proposed by Delaware-based investment firm Kryptoin and Anthony Scaramucci’s SkyBridge Capital, with new dates expiring July 27 and August 25, respectively. .

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Other companies are also lining up at the regulator’s door, with Cathie Wood’s ARK Invest among recent notable additions to the list.

Grayscale Investments has also committed to transforming its Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF, although it has yet to submit a formal application to the SEC. Last week, the firm signed an agreement with BNY Mellon, which will see the global investment bank as a provider of accounting and management services for GBTC and, ultimately, for its planned Bitcoin ETF, as long as the regulators do so. light.

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