Global X is slated to launch a new exchange-traded fund (ETF) as two of its cryptocurrency funds benefit from growing demand.
The Global X US Infrastructure Development ETF is set to be launched soon, the firm said.
The ETF provides investors with exposure to firms set to benefit from increased infrastructure activity in the US, a sector backed by federal spending to drive the strong need for growth.
This will include investment towards companies involved in the production of raw materials, heavy equipment, engineering and construction.
“With our US counterpart currently the largest US infrastructure development ETF in the United States, we’re excited to bring [the ETF] to the Australian market alongside the insights and research of our global team.”
Crypto activity surges upwards
Meanwhile, two of Global X’s crypto ETFs are experiencing notable growth as the digital assets receive further regulatory approval.
On 22 May, it was announced the Australian-listed Global X 21Shares Bitcoin ETF had surpassed a record $100 million in assets under management (AUM).
According to the fund manager, the fund is Australia’s only spot bitcoin ETF. In January, bitcoin ETFs received approval from the US Securities and Exchange Commission (SEC), marking a “watershed” moment for the digital currency.
“This is an exciting time for cryptocurrency markets. Growing demand has been reflected in strong inflows into our product and more broadly on a global basis,” commented Evan Metcalf, chief executive of Global X ETFs Australia.
“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 the January announcement, Global X observed more than $30 million flowing into its bitcoin ETF which is expected to continue growing alongside investor demand.
Two days later, it was also confirmed that the US regulator had approved spot ethereum ETF applications, marking another significant milestone for cryptocurrency in 2024.
Global X welcomed the announcement, with its ethereum ETF garnering $22.6 million in investor funds since its launch in May 2022.
Commenting on the news, Metcalf said: “The SEC’s approval of spot ethereum ETFs is another significant milestone for cryptocurrency investing, reflecting growing accessibility and adoption of these digital assets in the US and worldwide.
“As investors increasingly seek diversification and exposure to high-growth assets, we expect heightened demand for bitcoin and ethereum investments globally and here in Australia. Global X is committed to delivering accessible investment solutions that align with the evolving needs of investors.”
The fund manager’s bitcoin ETF and ethereum ETF track the price performance of the digital currencies in Australian dollars, providing investors exposure to the digital asset without the complexities associated with direct ownership. Currently, both ETFs are available on Cboe.