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As the price of Bitcoin hovers around $30,000, fund managers are working hard to get the first American Bitcoin ETF approved.
Global X Digital Assets, based in New York, has filed an application with the Securities and Exchange Commission for a Bitcoin (BTC) exchange-traded fund (ETF).
Filed on Wednesday, the application indicates that the proposed Global X Bitcoin Trust — a Delaware statutory trust formed in mid-July of this year — would, if approved, trade on the Cboe bZx exchange. The Bank of New York Mellon would serve as the trust’s administrator. As per the filing:
“The Trust’s investment objective is to reflect the performance of the price of bitcoin less the expenses of the Trust’s operations. The Trust will not seek to reflect the performance of any benchmark or index.”
The fund’s investors, or their authorised financial agents, would receive Bitcoin from the trust via an unnamed BTC custodian. While the custodian is unnamed, Global X indicates that it is a limited purpose trust company authorised to provide digital asset custody services by the New York State Department of Financial Services. According to the filing, the trust “will not purchase or, barring a liquidation or extraordinary circumstances described herein, directly sell bitcoin.”
The trust’s sponsor, Global X Digital Assets, is affiliated with Global X Management Company, also known as Global X, and Mirae Asset Global Investments. The latter, which is based in Seoul,
Greg King, CEO of Osprey Funds, argued earlier this week that the high number of Bitcoin ETF applications in the United States earlier this year contributed to Bitcoin’s extraordinary 2021 bull run.
The SEC’s continued reluctance to approve a crypto ETF, combined with hawkish regulatory remarks in the United States regarding various crypto assets such as stablecoins, has, according to King, played a role in the coin’s subsequent price decline. According to King, the earliest a Bitcoin ETF application would be approved by a US regulator would be in 2022.