Global X launches the firm’s first physically backed crypto offering
Global X ETFs has announced the launch of two exchange-traded products, the Global X Bitcoin ETP (BT0X) and the Global X Ethereum ETP (ET0X), issued by Global X Digital Assets Issuer Limited (Global X).
These launches are Global X’s first products to be physically backed by cryptocurrencies. Listed on Deutsche Börse Xetra, BT0X and ET0X underscore the firm’s long-term confidence in the digital assets theme, joining existing products including the Global X Blockchain UCITS ETF.
The digital asset space has scaled from a decentralised currency to a digital economy. Bitcoin is a finite supply asset with a substantial network of users that have come to an agreement on its value as a form of money that cannot be controlled by a singular entity. While the Bitcoin network provided a framework for a decentralised payment channel, the use case for digital assets has expanded to allow for the creation of applications that leverage the advantages of blockchain technology. Ethereum is a blockchain ecosystem with utility across a wide-range of applications including transactions, smart contracts, and NFTs.
“Cryptocurrencies offer a path to invest in the potential of a permission-less, decentralised, and transparent infrastructure. Backed by blockchain technology, cryptocurrencies can scale, revolutionise, and improve traditional sectors within our economic, political, and socio-cultural landscape,” says Rob Oliver, Head of Business Development at Global X ETFs.
“Global X has continued to embody its philosophy of striving to offer investors something beyond ordinary, reflected in the firm’s move to launch its first crypto offering in the European market. We’re thrilled to bring European investors access to Bitcoin and Ethereum in the secure and regulated exchange-traded product wrapper through BT0X and ET0X, respectively.”
BT0X and ET0X, each with an arranger fee of 0.65 per cent, are physically-backed exchange traded products that seek to capture the long-term growth potential of Bitcoin and Ethereum, respectively. These products hope to provide cost-efficient access to Bitcoin and Ethereum, with the relative transparency and security of debt securities trading on a regulated stock exchange. Coinbase Custody International Ltd. operates as the secure cryptocurrency custodian for BT0X and ET0X.