New York-based fund manager Global X Digital Assets has filed an application for a Bitcoin (BTC) exchange-traded fund (ETF) with the United States Securities and Exchange Commission. Global X Digital Assets, which is the sponsor of the proposed trust, is affiliated with Global X Management Company, also known as Global X, and Mirae Asset Global Investments.
Archived On July 21, the application indicates that the proposed Global X Bitcoin Trust would be listed on the Cboe BZX exchange. According to the presentation:
“The investment objective of the Trust is to reflect the performance of the price of bitcoin minus the expenses of the operations of the Trust. The Trust will not seek to reflect the performance of any benchmark or index ”.
Investors in the fund, or their authorized financial agents, would receive Bitcoin from the trust through an unnamed BTC custodian. The filing stipulates that the trust itself “will not buy or, barring a liquidation or extraordinary circumstances described in this document, sell bitcoins directly.”
Related: Grayscale ‘100% Committed’ to Convert GBTC to Bitcoin ETF – CEO
Earlier this week, Greg King, CEO of Osprey Funds, argued that the large number of Bitcoin ETF applications in the US earlier this year contributed to Bitcoin’s extraordinary bull run in 2021. The persistent reluctance of the SEC to approve a crypto ETF, along with aggressive regulatory comments in the US regarding various crypto assets such as stablecoins, has played, for King, a role in the subsequent drop in the price of the coin. King has suggested that 2022 would be the earliest the US regulator would approve a BTC ETF application.