In a press release, Global X ETFs announced the launch of the Global X Blockchain & Bitcoin Strategy ETF (BITS). BITS seeks long-term growth potential by combining prudent management of bitcoin futures positions with exposure to disruptive companies on the cutting edge of the emerging blockchain technology and digital assets theme.
The actively managed fund is among the first ETFs designed to provide long-term investors with access to both bitcoin futures as well as companies positioned to potentially benefit from advances in blockchain technology.
BITS’ approach to owning both bitcoin futures and blockchain equities offers investors a thematic approach to the rapidly emerging digital assets space. Bitcoin, the world’s largest cryptocurrency, continues to benefit from greater adoption as both a means of transacting and as a long-term investment. Blockchain equities such as digital asset mining, blockchain transactions, hardware, and software are all well-positioned to benefit from continued growth in the cryptocurrency space.
“The blockchain and digital asset theme is reaching a critical inflection point as adoption accelerates across millions of people and businesses around the world. We believe investors looking to participate in the full disruptive potential of this powerful theme ought to gain exposure to both the companies and digital assets leading these advancements,” said Jay Jacobs, head of research & strategy at Global X. “Leveraging our expertise in thematic investing, Global X has developed an efficient strategy with long term, growth-oriented investors in mind.”
BITS has a management fee of 0.65%.
For more news, information, and strategy, visit the Crypto Channel.
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 more than 90 ETF strategies and over $40 billion in assets under management.[i]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.com.
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.[ii]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 $70bn in assets under management.[iii]
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Bitcoin and bitcoin futures are a relatively new asset class. They are subject to unique and substantial risks, and historically, have been subject to significant price volatility. The value of an investment in the Fund could decline significantly and without warning, including to zero. You should be prepared to lose your entire investment.
Investing involves risk, including the possible loss of principal. BITS is actively managed and invests in bitcoin futures contracts. The ETF does not invest directly in or hold bitcoin. The price and performance of bitcoin futures should be expected to differ from the current “spot” price of bitcoin. These differences could be significant. Bitcoin futures are subject to margin requirements, collateral requirements and other limits that may prevent the ETF from achieving its objective. Margin requirements for futures and costs associated with rolling (buying and selling) futures may have a negative impact on the fund’s performance and its ability to achieve its investment objective.
Bitcoin is largely unregulated and bitcoin investments may be more susceptible to fraud and manipulation than more regulated investments. Bitcoin and bitcoin futures are subject to rapid price swings, including as a result of actions and statements by influencers and the media.
Narrowly focused investments typically exhibit higher volatility. Investments in blockchain companies may be subject to the following risks: the technology is new and many of its uses may be untested; theft, loss or destruction of key(s) to access the blockchain; intense competition and rapid product obsolescence; cybersecurity incidents; lack of liquid markets; slow adoption rates; lack of regulation; third party product defects or vulnerabilities; reliance on the Internet; and line of business risk. Blockchain technology may never develop optimized transactional processes that lead to realized economic returns for any company in which the Fund invests. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. BITS is nondiversified.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Market price returns are based on the official closing price of an ETF share or, if the official closing price isn’t available, the midpoint between the national best bid and national best offer (“NBBO”) as of the time the ETF calculates current NAV per share. NAVs are calculated using prices as of 4:00 PM Eastern Time. The returns shown do not represent the returns you would receive if you traded shares at other times. Indices are unmanaged and do not include the effect of fees, expenses or sales charges. One cannot invest directly in an index.
Carefully consider the Fund’s investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Fund’s summary or full prospectuses. Please read the prospectus carefully before investing.
Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC or Mirae Asset Global Investments. Neither SIDCO, Global X nor Mirae Asset Global Investments are affiliated.
[i]Source: Global X, as of 11/11/21.
[ii]Mirae Asset, as of June 2021
[iii]Mirae Asset, as of 10/18/21