New York-based exchange-traded fund (ETF) provider Global X has joined the ever-growing list of Bitcoin ETF prospects with a new filing with the United States Securities and Exchange Commission (SEC). Global X has $ 35 billion in assets under management and is a subsidiary of the $ 560 billion investment manager Mirae Asset.
If approved, the Global X Bitcoin Trust will issue common stock to trade on the Cboe BZX Exchange under a ticker symbol that will be announced just before trading begins. The ETF will hold bitcoin to meet its investment goal of being a proxy for the BTC price in dollars, less operating expenses.
According to the filing, Global X Digital Assets, which is affiliated with both Global X Management Company and Mirae Asset Global Investments, will be the sponsor of the offering – responsible for creating, registering and listing the offering. ‘ETF and its shares. However, the document does not specify which companies will be the trustee and bitcoin custodian for the trust.
Like Grayscale’s recently announced strategy for its bitcoin product, GBTC, the Bank of New York Mellon (BNY Mellon) would also help Global X administer its ETF. BNY will provide Global X with accounting, tax and financial reports for the maintenance and operations of the Trust.
Besides Global X and Grayscale, several other investment managers have also filed for bitcoin ETFs in the US lately, heating up the race. This year alone, Valkyrie, NYDIG, VanEck, SkyBridge Capital, and Fidelity all filed their own bitcoin ETF offerings. But even though the SEC has delayed all of them, the outlook has arguably improved.
A recent report highlighted why the regulator may capitulate soon, citing the distinctly huge acceleration in institutional adoption of bitcoin this year. And in early July, former Commodities and Futures Trade Commission chairman Timothy Massad explained how a bitcoin ETF could benefit investors and regulators.
An ETF offering for a product reduces the inherent difficulties of investing directly in the asset by disregarding it through a convenient investment vehicle in an established exchange. Of course, however, investing in an ETF does not mean that the investor owns the underlying asset – whatever it is. And in the case of Bitcoin, this distinction is perhaps more important, as self-care is essential to true individual sovereignty.