Global X, a firm specializing in exchange-traded funds (ETFs) of different categories, based in New York, filed an application with the United States Securities and Exchange Commission (SEC) to launch a bitcoin ETF (BTC).
Global X’s proposal states that its intention is to issue ordinary shares to trade on the Cboe BZX Stock Exchange. The name of the ETF would be Global X Bitcoin Trust, however, they did not specify which companies would guard the bitcoins acquired by Global X.
In this way, Global X joins companies such as VanEck, Fidelity, SkyBridge, Grayscale and others, who have applied for bitcoin ETFs and are awaiting approval or rejection by the SEC.
The firm is a member of the Mirae Asset Financial Group, a South Korean-based company specializing in asset management around the world. This will have the function of sponsoring the offer and will be the responsible for creating, registering, listing the ETF of bitcoin and its shares, according to the document released on July 21.
The Global X proposal has the support from America’s oldest bank, the Bank of New York Mellon (BNY Mellon).
The financial institution will be in charge of supplying the ETF, if approved, of accounting, tax and financial reports for the maintenance and operations of the trust.
BNY Mellon will do something similar with the firm Grayscale Investments, with the aim of offering various asset and ETF services for its Grayscale Bitcoin Trust product, as reported by CriptoNoticias.
BNY Mellon has joined several bitcoin ETF applicants such as Grayscale, Skybridge and is now doing the same with Global X. Composition by CryptoNews. Sources: PNG Egg / pngegg.com; wsj / wsj.com.
Global X has 84 financial products spanning sectors such as construction, technology, cannabis, healthcare, and communications. The company founded in 2008, owns USD 35 billion of assets under his administration.
First step to the digital asset market
Recently, Global X began to give importance within its investment portfolio to digital assets.
On July 14, it launched an ETF focused on investing in companies that “are well positioned to benefit from advances in blockchains.” It also includes digital asset mining companies, transfers through blockchains and decentralized applications, among others.
Approval of bitcoin ETFs pending in the United States
Bitcoin ETFs are coveted by many companies and firms in the United States but, so far, the authority in charge of the area, has not issued a favorable opinion on the matter.
In fact, it is believed that the SEC, will not issue any type of regulatory opinion in the near future, since it made no mention of bitcoin or ETFs, in its 2021 Agenda presented last June and reported here.
The delay in approving BTC ETFs has placed the United States behind countries such as Canada or Brazil, which have already approved several ETFs of the leading cryptocurrency.
It is worth remembering that bitcoin ETFs are funds that can be traded on stock exchanges as if they were a stock. In other words, they are hybrid financial products, since they have the characteristics of an investment fund and operate like a share.