Global X Files for Bitcoin Futures ETF With CoinDesk

Global X, the ETF issuer with nearly $44 billion under management, has filed to launch a bitcoin futures fund as soaring expectations for a spot bitcoin fund pushes investor demand for crypto products. 

The firm, which manages 108 ETFs, will issue the fund in partnership CoinDesk Indices, a subsidiary of the popular crypto news site, according to its July 20 filing with the SEC. The fund would track the CoinDesk Bitcoin Trend Indicator Index—an index CoinDesk Indices has developed based on its quantitative pricing predictor.  

The filing comes as investors await potential approval of the first spot bitcoin exchange-traded fund by the Securities and Exchange Commission. The proposed fund is a different animal, since it offers exposure to the price movements of bitcoin futures contracts, a fund structure that the SEC has approved. Global X already operates the Global X Blockchain and Bitcoin Strategy ETF (BITS), and experts believe it likely the regulatory body will approve the new filing.  

Spot Bitcoin ETF 

James Seyffart, ETF analyst at Bloomberg Intelligence, said in a tweet that it is “not even debatable at this point” that new Global X Bitcoin Strategy ETF would be approved by the SEC. Global X has also filed for a spot bitcoin ETF, yet it is unclear whether the SEC will approve any so called “spotcoins.”  

Excitement about crypto spot ETFs has been a boon for exchange-traded products for the sector at large. According to data from crypto research firm K33, investors put $757 million into bitcoin exchange-traded products since BlackRock filed for a spot-based ETF on June 15, indicating that investors are not slowing on bitcoin investment.  

According to the filing, the strategy will rely on quantitative analysis in the underlying index to rebalance the ETF. The index will add to bitcoin futures holdings when it detects positive conditions, and when conditions are negative, it will add allocations of the Global X 1-3 Month T-Bill ETF (CLIP), the filing said. 

CoinDesk Indices launched an algorithm in April that tracks and predicts the strength of bitcoin’s price trend. The index seeks to tease out trends in bitcoin prices, the company said in a statement when the index went live. 

Contact Lucy Brewster at [email protected] or on Twitter at @lucyrbrewster