NY-based fund manager GlobalX Digital Assets has joined the list of firms applying to file a bitcoin exchange-traded fund (ETF) in the U.S.
GlobalX filed a proposal for bitcoin ETF on Wednesday with the Securities and Exchange Commission (SEC) to list on the Cboe BZX Exchange. An unidentified custodian will provide custody for the bitcoins purchased by GlobalX.
If given the green light, the GlobalX Bitcoin ETF 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.
In seeking to achieve its investment objective, GlobalX will hold bitcoin. It will value its assets daily in accordance with Generally Accepted Accounting Principles (“GAAP”).
BNY Mellon will serve as administrator and transfer agent if the proposal passes muster. It will provide Global X with accounting, tax, and financial reports to help keep the trust up and running.
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The SEC is now reviewing more than a dozen similar applications and hasn’t approved any of them. Some have had their formal application windows extended on more than one occasion.
