- This is not a spot bitcoin-ETF.
- The fund will track the CoinDesk Bitcoin Trend Indicator index.
Global X has filed with the Securities and Exchange Commission to create a crypto fund.
The proposed Bitcoin Trend Strategy will track the CoinDesk Bitcoin Trend Indicator, which is allocated between bitcoin futures contracts and Global X’s 1-3 Month T-Bill ETF (CLIP) instrument, giving investors access to the short-term Treasury bill market.
The basic idea is to switch between bitcoin futures and Treasuries using “risk-on” or “risk-off” market settings.
Morningstar’s director of passive strategies Brian Armour told Blockworks that the crypto fund from Global X, thanks to its ability to switch to more Treasury bills, is likely aimed at investors who want to avoid significant losses in their investments.
Sumit Roy, senior analyst at ETF.com, said the filing is the result of a “race” of spot bitcoin-ETFs.
“In fact, there are only a handful of spot bitcoin funds available in the market that are capable of generating significant interest among investors. Companies with a recognized brand, greater resources, and strong marketing efforts like BlackRock can best position themselves in this sector,” Roy added.
By the way, on July 19, the SEC formally filed six spot bitcoin ETF applications in the Federal Register from Bitwise, BlackRock, Fidelity, WisdomTree, VanEck and Invesco.