Last week, Global X submitted its application for a spot Bitcoin ETF, aiming to join the league of industry players seeking to introduce Bitcoin-based investment products. Provided that its application is greenlit, investors would secure access to Bitcoin and gain essential safety measures that aren’t consistently within reach to those investing directly in the cryptocurrency, as reported in the Friday filing.
In this scenario, the company’s pursuit of permission to launch a spot Bitcoin exchange-traded fund enters the arena as the ninth active application of its type being evaluated by American authorities. This notable move occurs in conjunction with the appeal made by Grayscale, a subsidiary of Digital Currency Group (also the parent company of CoinDesk), challenging the SEC’s dismissal of its proposal for a similar ETF structure.
Global X, well-known as an ETF provider, recognized Coinbase as its collaborator in surveillance-sharing, a step that aims to gain regulatory approval. The selection of a surveillance-sharing partner rings a familiar bell as several other ongoing applications, such as those submitted by Fidelity and BlackRock, have similarly disclosed their alliance with the exchange platform. This move addresses one of the shortcomings noted by the SEC in previous Bitcoin ETF applications—an absence of a robust surveillance-sharing agreement.
In parallel with its spot Bitcoin ETF application, Global X has sought authorization to roll out a Bitcoin futures ETF. With its plans not restricted to just these applications, the company recently filed an application to establish a fund that trails the CoinDesk Bitcoin Trend Indicator Index, a component of the CoinDesk family of companies.
This development portrays a double-edged sword for potential investors. On one hand, the anticipated approval signifies another step towards mainstream adoption of digital assets, increasing their accessibility to a broader base of investors. Conversely, concerns about regulatory controls and potential manipulation in the cryptocurrency market, coupled with the inherent volatility and security risks associated with digital assets, continue to raise questions about the viability and stability of such investment products.
As this scenario unfolds, it becomes apparent that the intersection of cryptocurrency and traditional investment tools will continue to push through a complex labyrinth of regulatory scrutiny and market skepticism. Nevertheless, the increasing desire to bridge this gap radiates an undeniable enthusiasm for the blockchain future.
Source: Coindesk
