New fund marks firm’s expansion into bitcoin alternative
Global X Management Company LLC (“Global X”), the New York-based provider of exchange-traded funds (ETFs), today announced the launch of the Global X Ethereum Covered Call ETF (EHCC), which uses options strategies to provide exposure to ether-related investments and seeks to generate income without directly holding the digital assets.
The launch marks Global X’s first time creating a fund related to a cryptocurrency other than bitcoin. Ether is the native digital currency that powers the Ethereum blockchain platform.
With the addition of EHCC, Global X offers a total of four ETFs related to digital assets. The other three are as follows:
- Bitcoin Covered Call ETF (BCCC),
- Bitcoin Trend Strategy ETF (BTRN), and
- Blockchain & Bitcoin Strategy ETF (BITS).
“Investors seeking income from their digital asset exposure have had limited options until recently,” said Pedro Palandrani, Head of Product Research & Development at Global X. “Although we believe ether has significant growth potential, it’s also a highly volatile asset, which we believe makes it well suited for a covered call strategy that aims to generate weekly income while maintaining exposure to potential price appreciation.”
EHCC seeks to generate income by writing call options on the underlying ether-related exchange-traded products (ETPs), giving up part of the exposure’s potential upside in exchange for option premiums. A portion of this premium is distributed to investors on a weekly basis.
EHCC has an expense ratio of 0.75% and is actively managed.
“The crypto market has expanded materially over the last decade, and ether has established itself as one of its most actively traded digital assets. For many investors, ether’s price volatility has been a barrier to entry but EHCC is designed to reframe that volatility as an investor opportunity by using option premiums in an effort to generate weekly distributions while retaining exposure to ether’s price movements,” Palandrani added.
About Global X
Global X was founded in 2008. For more than fifteen years, our mission has been empowering investors with unexplored and intelligent solutions. Our product lineup features a wide range of ETF strategies and $78.1 billion in assets under management. While we are distinguished for our thematic, income, and international ETFs, we also offer core and other 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 (“Mirae Asset”), a global leader in financial services, with $803 billion in assets under management worldwide. Mirae Asset has an extensive global ETF platform ranging across the U.S., Australia, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam.
