ST. HELIER, Jersey, March 10, 2022 /PRNewswire/ — Global X ETFs, a leading global provider of exchange-traded funds (ETFs), today announced the launch of two exchange-traded products (ETPs): 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 (LSE: BKCH).
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 leading blockchain ecosystem with utility across a wide-range of applications including transactions, smart contracts, and NFTs.i
“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,” said 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%, are physically-backed exchange traded products that seek to capture the long-term growth potential of Bitcoin and Ethereum, respectively. These products 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.
About Global X ETFs
Global X ETFs was founded in 2008. For more than a decade, our mission has been empowering investors with unexplored and intelligent solutions. Our product lineup features 90 ETF strategies and over $40 billion in assets under management.ii While we are distinguished for our Thematic Growth, Income and International Access ETFs, we also offer Core, Commodity, and Alpha funds to suit a wide range of investment objectives. Explore our ETFs, research and insights, and more at www.globalxetfs.eu.
Global X is a member of Mirae Asset Financial Group, a global leader in financial services, with more than $620 billion in assets under management worldwide.iii Mirae Asset has an extensive global ETF platform ranging across the US, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam with over $80bn in assets under management.iv
Cryptocurrency Exchange Traded Products (ETPs) are designed for financially sophisticated investors. They may not be offered to retail investors in the UK as the sale of the ETPs to such investors has been banned by the UK regulator, the Financial Conduct Authority. The value of an investment in ETPs may go down as well as up and past performance is not a reliable indicator of future performance.
Global X has classified these products as 7 out of 7, which is “the highest” risk class.
This rates the potential losses from future performance at a very high level, and poor market conditions are very likely to impact the ability for investors to receive a positive return on investment. Investors might not receive payments in your local currency or the currency in which you wish to be repaid, meaning that final return may depend on the exchange rate between the two currencies or units of account. The product invests in the digital asset cryptocurrencies, which are traded on various digital exchanges and are generally characterized as presenting high risk, but which also allows for the opportunity of high returns. Given the fact that the products invest in one volatile digital asset, the product has a higher risk than other products using the diversification method of investing in a basket of digital assets. The product does not include any protection from future market performance so you could lose all or some of their initial investment. If Global X is not able to pay investors what is owed, they could lose their entire investment.
Prospectuses, Key Investor Information Documents (KIIDs) and Final Terms for the ETPs are available in English at www.globalxetfs.eu.
This information is not intended to be individual or personalised investment or tax advice and should not be used for trading purposes. Please consult a financial advisor or tax professional for more information regarding your investment and/or tax situation. Access is restricted for investors that are not eligible to invest in the ETPs including in particular UK retail investors.
Investing involves risk, including the possible loss of principal. Any reference to past performance is not a reliable indicator of future results.
Information provided by Global X Management Company LLC (Global X ETFs or Global X). Information is not addressed to or intended to be disseminated to UK retail investors to whom the sale of the ETPs is banned by the UK regulator, the Financial Conduct Authority.
i Source: Ethereum vs. Bitcoin: Differences Between BTC & ETH. Gemini. (2021, September 10)
Contact: Audrey Belloff, [email protected]
SOURCE Global X Digital Assets Issuer Limited