The fund manager of Global X Digital Assets, based in New York, has filed an application with the United States Securities and Exchange Commission for a Bitcoin (BTC) Exchange Traded Fund (ETF).
The motion submitted on Wednesday shows that the proposal for Global X Bitcoin Trust, a Delaware legal trust established in mid-July of this year, if approved, is listed on the Cboe bZx exchange. The Bank of New York Mellon would act as trustee of the trust. According to the presentation:
“The investment objective of the Fund is to track the performance of the Bitcoin price minus the operating expenses of the Fund. The Fund will not seek to track the performance of any index or benchmark.”
Investors in the fund or their authorized financial agents, would receive bitcoin from the trust through an unidentified BTC custodian. Though it wasn’t named Global X advises that the custodian is a limited purpose trust company authorized by the New York State Department of Financial Services to provide custody services for digital assets.. The filing states that the trust fund itself “will not buy or sell bitcoin directly, subject to liquidation or exceptional circumstances described herein”.
Global X Digital Assets, the trust sponsor, is affiliated with Global X Management Company, also known as Global X, and Mirae Asset Global InvestmentsThe latter, based in Seoul, South Korea, manages assets around the world whose value exceeded $ 560 billion in March 2021.
Earlier this week Gregor König, CEO of Osprey Funds, argued that the large number of applications for Bitcoin ETFs in the US earlier this year contributed to Bitcoin’s extraordinary bull run in 2021.
The SEC’s ongoing refusal to approve a cryptocurrency ETF, along with additional regulatory comments in the US on various crypto assets such as stablecoins, for King, played a role in the subsequent decline in the rate of the currencyKing has suggested that 2022 would be the earliest date the U.S. regulator would approve a Bitcoin ETF application.