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Global X bitcoin ETF tops $100m, awaits SEC Ethereum approval

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Global X’s Australian-listed bitcoin ETF has surpassed a record $100 million in assets under management.

With the price of bitcoin still supported by the decision the US regulator made in January to allow ETFs that hold bitcoin to begin operating, Global X confirmed on Wednesday it’s Cboe-listed bitcoin ETF has surpassed $100 million in assets under management.

According to the fund manager, the Global X 21Shares Bitcoin ETF (Cboe: EBTC) is Australia’s only spot bitcoin ETF.

The fund tracks the performance of bitcoin in Australian dollars and grants investors access to segregated bitcoin held in secure “cold storage” with Coinbase, the world's largest cryptocurrency custodian.

“This is an exciting time for cryptocurrency markets,” said Evan Metcalf, chief executive officer at Global X ETFs Australia.

“Growing demand has been reflected in strong inflows into our product and, more broadly, on a global basis. Combine this with positive regulatory movements abroad and everything points to a growing confidence in the sector. Naturally, investors are optimistic and excited about what this means for bitcoin longer-term.”

Since January, Global X has seen over $30 million flowing into its bitcoin ETF, with Metcalf noting the firm expects this momentum to continue particularly as the US regulatory decision around spot Ethereum ETFs is due to this week.

Global X also has an Ethereum ETF on Cboe.

“At Global X, we remain committed to leading the charge in providing investors with an extensive array of quality investment opportunities to support portfolio diversification,” Metcalf said.

“Our cryptocurrency offerings, such as our bitcoin and Ethereum ETFs, EBTC and EETH, alongside our Fintech and Blockchain ETF (Cboe: FTEC), offer Australian investors an accessible means to capitalise on the potential gains of this sector.”

Brisbane-based Monochrome Asset Management has challenged Global X’s assertions of it being the only provider of a spot bitcoin ETF in Australia. Due to shortly launch its own bitcoin ETF on Cboe, the firm said in April it will be the “first spot bitcoin ETF in Australia which allows direct holding of bitcoin”.

Jeff Yew, CEO of Monochrome, told InvestorDaily that Monochrome is the only compliant fund under Australian regulations requiring a specific “crypto assets” licence, unlike Global X funds which avoid this by using a wholesale-retail feeder fund structure.

“A direct holding spot bitcoin ETF provides investors with a straightforward, transparent pathway to exposure. It is identical to how spot bitcoin ETFs are structured in the US,” Yew said.

Global X, however, insists it was the first spot bitcoin ETF in the Australian market.

Maja Garaca Djurdjevic

Maja Garaca Djurdjevic

Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.