Exchange-traded fund (ETF) provider, Global X, has submitted a filing of its own with the SEC for a bitcoin ETF.
Global X joined the myriad of companies looking to become the next bitcoin ETF with a new filing with the Securities and Exchange Commission (SEC). The proposal with the SEC requests accesses to list the Global X Bitcoin Trust on the Cboe BZX Exchange. If given the green light, the Global X Bitcoin Trust will issue common shares of beneficial interest for trade under a yet to be determined ticker symbol. The ETF will operate with the goal of holding bitcoin in order to reach the investment goal of becoming a proxy for the price of bitcoin in dollars.
As of this writing, Global X, a subsidiary of Mirae Asset, reportedly has $35 billion in assets under management.
The Bank of New York Mellon (BNY Mellon) is also getting involved in Global X’s ETF aspiration and will serve as administrator and transfer agent if the proposal passes muster. The bank will provide Global X with accounting, tax, and financial reports to help keep the trust up and running. BNY Mellon is also aiding Grayscale with its recently announced strategy for its bitcoin product, GBTC.
Global X Bitcoin Trust
While the ticker name is yet to be announced, which will come soon before trading commences, we do know a lot about the proposed fund. According to the paperwork filed with the SEC, the investment objective of the trust “is to reflect the performance of the price of bitcoin less the expenses of the Trust’s operations.” The proposal states the trust will not seek to reflect the performance of any index or benchmark. “In seeking to achieve its investment objective, the Trust will hold bitcoin. The Trust will value its assets daily in accordance with Generally Accepted Accounting Principles (GAAP), which generally value bitcoin by reference to orderly transactions in the principal active market for bitcoin.”
The filing goes on to say that and shareholders who make the move to buy or sell shares in the Global X Bitcoin Trust will use trade brokers to make orders, a step that could incur commission, and that trades may occur at a discount relative to the net asset value of the shares. Grayscale and Global X are among several investment managers who have filed similar proposals with the SEC. The list includes Fidelity, NYDIG, SkyBridge Capital, and VanEck. Despite the rush of filings, the SEC has delayed or help up each request thus far.
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