NEW YORK, March 21, 2024 /PRNewswire/ -- Global X ETFs, the New York -based provider of exchange-traded funds (ETFs), in partnership with CoinDesk Indices, a market-leading provider of digital asset indices since 2014, today launched the Global X Bitcoin Trend Strategy ETF (Ticker: BTRN). BTRN is the first ETF i to leverage the CoinDesk Bitcoin Trend Indicator ("BTI") signal.
Digital assets represent a compelling option for portfolio allocation as adoption rates increase and new use cases are implemented. Bitcoin is the largest digital asset by market capitalization and has one of the most robust user networks.ii
"BTRN was designed to help navigate various market cycles by providing dynamic exposure to bitcoin futures based on bitcoin 's current price trend. The simple, yet powerful idea behind trend strategies is that markets respond slowly to news and changes. BTRN seeks to capitalize on the shifts in market sentiment as part of a systematic and dynamic approach which may capture upside potential and minimize drawdowns relative to a bitcoin futures-only allocation," said Adam Sze, Head of Product Development at Global X ETFs. "BTRN represents the evolution of digital asset ETFs by utilizing a factor-based approach to gaining exposure to bitcoin futures. We are excited to partner with the CoinDesk Indices team to bring this innovative product to market."
The BTI is built on trend data which has been backtested over a five-year historical period and is calculated daily, broadcasting one of five possible values that will direct BTRN's allocation to bitcoin futures. CoinDesk Indices observed in that data that a hypothetical portfolio of bitcoin and cash informed by the BTI may have reduced exposure to bitcoin during ' crypto winters' while still participating in price uptrends, albeit in a risk-adjusted capacity. Based on the BTI signal, the fund dynamically shifts between bitcoin futures when the value of the signal is higher and decreases its allocation to bitcoin futures when the value of the Signal is lower. The BTI draws upon CoinDesk Indices digital asset experience with bringing institutional-class indices and strategies to market.
"We are proud to work with Global X ETFs to deliver the power of our Bitcoin Trend Indicator signal within an ETF vehicle," said Alan Campbell, President of CoinDesk Indices. "The BTI was designed to help investors navigate long-term bitcoin drawdowns, mitigating potential risks. With the approval of spot bitcoin ETFs iii, we view the timely launch of the Global X Bitcoin Trend Strategy ETF as an expansion in thoughtful exposure to bitcoin futures." BTRN seeks to track the CoinDesk Bitcoin Trend Indicator Futures Index (the "Index"). The Index systematically and dynamically allocates between U.S. exchange-traded bitcoin futures and the Global X 1-3 Month T-Bill ETF (Ticker: CLIP). The allocation between these two exposures is based on the value of the Bitcoin Trend Indicator ("BTI") designed and maintained by CoinDesk Indices. The BTI is a daily signal that conveys the presence, direction, and strength of the current price trend of bitcoin. BTRN maintains greater exposure to bitcoin futures when the price trend is positive and reduces risk when the trend reverses, allocating a greater portion to CLIP.
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 a wide range of ETF strategies and over $40 billion in assets under management worldwide.iv While we are distinguished for our Thematic Growth, Income and International Access ETFs, we also offer Core, Commodity, and Risk Management 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 $540 billion in assets under management worldwide.v 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 $110bn in assets under management.vi
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i Source: CoinMarketCap, as of September 2023
ii Source: ETFDB, as of March 6, 2024
iii Source: SEC, January 10, 2024
iv Source: Global X ETFs, as of March 2024
v Source: Mirae Asset, as of March 2024
vi Source: Mirae Asset, as of March 2024
CoinDesk Indices disclaimer.
IMPORTANT INFORMATION:
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. BTRN invests in bitcoin futures contracts. The fund 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. BTRN is non-diversified.
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, changes in the supply of and demand for bitcoin and bitcoin futures contracts and other factors.
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.
Carefully consider the Funds' investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the fund's full or summary prospectus, which may be obtained by visiting globalxfunds.com. 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. Global X Funds are not sponsored, endorsed, issued, sold or promoted by CoinDesk, nor does CoinDesk make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO, Global X nor Mirae Asset Global Investments are affiliated with CoinDesk.
SOURCE Global X Management Company LLC
