The latest hopeful to file an application for a Bitcoin ETF with the US Securities and Exchange Commission is Global X Digital Assets, a fund manager with $31 billion in assets under management (AUM).
GlobalX is a subsidiary of Mirae Asset Global Investments, a global investment manager with over $560 billion in assets under management (AUM) based in Seoul.
A Bitcoin ETF, or exchange-traded fund, is meant to track the price of Bitcoin, allowing institutional investors to gain access to the underlying commodity without having to hold it physically.
The proposed Global X Bitcoin Trust—a statutory trust created in Delaware on July 13, 2021—would trade on the Cboe BZX exchange if approved, with the Bank of New York Mellon as its administrator.
“The trust’s investment objective is to represent the performance of the price of Bitcoin less the expenses of the trust’s operations,” according to the application submitted on July 21.
“The Trust will not strive to replicate any benchmark or index’s performance.” reads the document.
GlobalX stated that a ticker symbol for the new trust will be published prior to the start of trading, but it has yet to divulge the name of the custodian in charge of the Trust’s Bitcoin.
The custodian is a limited purpose trust business allowed to provide digital asset custody services in the state of New York, according to the firm.
GlobalX currently offers 84 ETFs in categories such as disruptive technology, equity income, commodities, and hard-to-access emerging markets.
The Global X Blockchain ETF (BKCH), which trades on the Nasdaq and “seeks to invest in companies positioned to gain from the rising adoption of blockchain technology,” was established earlier this month by the New York-based corporation. “Companies in digital asset mining, blockchain, and digital asset transactions, blockchain applications, blockchain, and digital asset hardware, and blockchain and digital asset integration,” according to the report.
The US is dragging its feet on the Bitcoin ETF.
Despite the fact that the first application for a Bitcoin ETF in the United States was submitted in 2013, the SEC has failed to approve any of the proposals that have come across its desk. Since then, countries such as Canada and Brazil have introduced Bitcoin ETFs, but the SEC has remained hesitant, citing Bitcoin’s volatility and the possibility of market manipulation as reasons.
SEC Commissioner Hester Peirce claimed at the B Word crypto conference earlier this week that a Bitcoin ETF should have already been approved, saying, “I would never have dreamed that I would be in this circumstance where we have not yet approved one and other nations are pushing ahead.”
The SEC postponed decisions on two Bitcoin ETFs proposed by Kryptoin, a Delaware-based investment business, and Anthony Scaramucci’s SkyBridge Capital earlier this summer, with new deadlines set for July 27 and August 25, respectively.
Other firms are also forming lines in front of the regulator’s door, with Cathie Wood’s ARK Invest being one of the most recent significant arrivals.
Grayscale Investments has also stated its intention to convert its Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF, though it has yet to file a formal application with the Securities and Exchange Commission. Last week, the company announced a partnership with BNY Mellon that will see the global investment bank serve as the accounting and administration service provider for GBTC and, eventually, its intended Bitcoin ETF–assuming regulators approve it.