Global X’s Palandrani: Bitcoin and ethereum ETPs ‘tip of the iceberg’

The issuer launched BT0X and ET0X in March

Theo Andrew

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Pedro Palandrani, research analyst at Global X, has said the issuer is exploring “buckets of investible areas” in the crypto space as it looks to expand its product range further following months of rapid growth on the European continent.

The US ETF issuer is planning to expand its exchange-traded product (ETPs) offering with the launch of crypto sector basket ETPs having entered the digital asset space with a bitcoin and ethereum launches earlier this year.

Global X, which now runs over 30 ETFs in Europe, launched the physically collateralised Global X Bitcoin ETN (BT0X) and the Global X Ether ETN (ET0X) in March offering exposure to the price movements of the coins with total expense ratios (TERs) of 0.65%.

“The launch of BT0X and ET0X is just the tip of the iceberg in what’s to come from us in the digital assets space,” Palandrani (pictured) said. “Our team is exploring products that bring innovative solutions to the market – similar to what we’ve done through our thematic growth and income product families.

“As the space grows, we can continue to see novel applications of blockchain technology merge with traditional sectors such as Internet of Things infrastructure, financial money markets, and a new digital ownership economy.

“The more sub-themes are created, the more indices can be offered and the wider the ETP product offering can expand.”

The US-based issuer entered the European market in December 2020 with the launch of the Global X Video Games & Esports UCITS ETF (HERU) and the Global X Telemedicine & Digital Health UCITS ETF (EDOC).

In March, it unveiled four China thematic ETFs and is eyeing the crypto space for further expansion.

He added the goal of digital asset ETPs should be to leverage the underlying disruptive technology into a regulated wrapper and that Global X is working with industry leaders and regulators to establish a “digital asset ETP framework that benefits all market participants”.

“ETPs and similar products operate in a regulatory framework that might not allow for certain strategies to be implemented due to investor interest, operational obstacles, risk exposures, and nuances in the digital asset infrastructure,” Palandrani said.

“Education builds conviction and a solid educational foundation must be built for market participants to get a good grip around the true value of this disruptive technology and the applications that are being built because of it.”

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