Global X Refiles Spot-Bitcoin ETF Application; SushiSwap Integrates Base Network

Global X, a provider of exchange-traded funds (ETFs), has refiled its application to list a spot-bitcoin ETF product on the New York Stock Exchange (NYSE). The fund, named Global X Bitcoin Trust, aims to offer investors exposure to bitcoin with important protections that are not always available to investors that invest directly in bitcoin, according to the filing.

A spot-bitcoin ETF is a type of investment product that tracks the price of bitcoin, the leading cryptocurrency by market capitalization. Unlike a futures-based bitcoin ETF, which uses contracts that bet on the future price of bitcoin, a spot-bitcoin ETF holds actual bitcoins in custody and allows investors to buy and sell shares of the fund on a regulated exchange.

Global X first filed for a spot-bitcoin ETF in July 2021, but withdrew its application in August 2021, without providing any explanation. However, the company did not give up on its ambition to launch a bitcoin ETF, as it also filed for a futures-based bitcoin ETF in September 2021.

The reapplication of Global X for a spot-bitcoin ETF comes at a time when the U.S. Securities and Exchange Commission (SEC) has yet to approve any bitcoin ETF proposals, despite receiving dozens of applications from various firms. The SEC has repeatedly delayed or rejected bitcoin ETF applications, citing concerns over market manipulation, fraud, and lack of investor protection in the crypto space.

However, some industry observers believe that the SEC may be more open to approving a futures-based bitcoin ETF than a spot-bitcoin ETF, as the former would rely on regulated futures markets rather than unregulated crypto exchanges. In fact, the SEC Chair Gary Gensler has hinted that he would look favorably on a futures-based bitcoin ETF under the Investment Company Act of 1940.

In its refiled application, Global X has named Coinbase Custody Trust Company as its custodian and Coinbase Global Markets as its surveillance-sharing partner. Coinbase is one of the largest and most reputable crypto platforms in the U.S., offering both custody and trading services for institutional and retail investors.

By partnering with Coinbase, Global X hopes to address the SEC’s concerns over the security and transparency of the bitcoin market. According to the filing, Coinbase Custody Trust Company will hold the bitcoins for the fund in cold storage, meaning offline wallets that are protected from hacking or theft. Moreover, Coinbase Global Markets will provide market data and surveillance tools to detect and prevent any fraudulent or manipulative activity in the bitcoin market.

A spot-bitcoin ETF could offer several benefits to investors who want to gain exposure to bitcoin without having to buy, store, or manage it themselves. Some of these benefits include:

Access: A spot-bitcoin ETF would allow investors to buy and sell shares of the fund on a regulated exchange, using their existing brokerage accounts and platforms. This would lower the barriers to entry and increase the liquidity and accessibility of bitcoin for mainstream investors.

Diversification: A spot-bitcoin ETF would enable investors to diversify their portfolios with an alternative asset class that has low correlation with traditional assets such as stocks and bonds. This could potentially enhance their risk-adjusted returns and hedge against inflation and currency devaluation.

Transparency: A spot-bitcoin ETF would provide investors with clear and accurate information about the fund’s holdings, performance, fees, and risks. The fund would also be subject to regular audits and regulatory oversight, ensuring compliance with applicable laws and standards.

However, investing in a spot-bitcoin ETF also involves significant risks that investors should be aware of before making any decisions. Some of these risks include:

Volatility: Bitcoin is known for its high price volatility, which means that it can experience large and rapid fluctuations in value. This could result in substantial losses for investors who are not prepared for such swings or who have a short-term investment horizon.

Regulation: Bitcoin is still subject to uncertain and evolving regulatory frameworks in different jurisdictions. This could pose legal and operational challenges for the fund and its service providers, as well as affect the availability and pricing of bitcoin. Moreover, any adverse regulatory actions or changes could negatively impact the demand and value of bitcoin and the fund.

Competition: Bitcoin faces competition from other cryptocurrencies and blockchain projects that may offer superior features, functionality, or adoption. This could reduce the market share and dominance of bitcoin and affect its long-term viability and growth potential.

SushiSwap Integrates Base Network, Supports Cross Network Trading

SushiSwap, one of the leading decentralized exchanges (DEXs) on Ethereum, has announced its integration with Base, a new Layer 2 (L2) network that aims to bring the next billion users to web3. This integration will enable SushiSwap users to trade across multiple networks with low fees, high speed, and enhanced security.

Base is an Ethereum L2 network that leverages the underlying security of Ethereum, along with Coinbase’s best practices, to offer a secure, low-cost, and developer-friendly platform for building decentralized applications (Dapps). Base is built on Optimism, a rollup-based scaling solution that provides full compatibility with the Ethereum Virtual Machine (EVM). Base also supports cross-network trading, allowing users to move assets across different L2s and L1s, such as Solana, using bridges.

SushiSwap is a community-driven DEX that offers a variety of features and products, such as liquidity pools, yield farming, lending, borrowing, and more. SushiSwap has been expanding its presence on multiple networks, such as Polygon, Fantom, Binance Smart Chain, and others, to provide more options and opportunities for its users. However, moving assets across different networks can be costly and complex, especially for new users who are not familiar with the different protocols and interfaces.

Base Network is a decentralized platform that allows users to trade across different blockchains without intermediaries. It supports cross network trading, which means that users can exchange tokens from different networks, such as Ethereum, Binance Smart Chain, Polygon, and more. This enables users to access a wider range of liquidity and opportunities in the crypto space.

Base Network uses a novel technology called Base Bridge, which connects different blockchains through smart contracts and relayers. Base Bridge ensures that the trades are secure, fast, and cheap. Users can also create their own custom bridges and earn fees from facilitating cross network transactions.

Base Network aims to become the ultimate cross chain solution for the crypto community. It offers a user-friendly interface, a variety of trading pairs, and low fees. Users can also benefit from the Base Token, which is the native utility token of the platform. Base Token holders can enjoy discounts on trading fees, governance rights, and rewards from staking and farming.

By integrating with Base, SushiSwap aims to simplify the cross-network trading experience for its users and offer them the best of both worlds: the security and decentralization of Ethereum, and the scalability and interoperability of Base. Users will be able to access SushiSwap on Base using their existing wallets and tools, such as MetaMask or Coinbase Wallet. They will also be able to trade across multiple networks with low fees and fast confirmation times, thanks to Base’s gasless transactions and bridges.

The integration of SushiSwap and Base will bring several benefits for users, such as:

Lower fees: Users will be able to trade on SushiSwap on Base with minimal gas fees, compared to trading on Ethereum L1 or other L2s. This will make trading more affordable and accessible for everyone.

Faster speed: Users will be able to trade on SushiSwap on Base with near-instant confirmation times, compared to waiting for minutes or hours on Ethereum L1 or other L2s. This will make trading more efficient and responsive for everyone.

Enhanced security: Users will be able to trade on SushiSwap on Base with the same level of security as trading on Ethereum L1, thanks to Base’s reliance on Ethereum’s consensus mechanism and Coinbase’s expertise. This will make trading more reliable and trustworthy for everyone.

More liquidity: Users will be able to trade across multiple networks with SushiSwap on Base, thanks to Base’s bridges that connect different L2s and L1s. This will make trading more flexible and profitable for everyone.

To start trading on SushiSwap on Base, users need to follow these steps:

• Visit SushiSwap website and connect their wallet of choice.

• Select Base network from the network dropdown menu.

• Deposit their assets from Ethereum L1 or other networks using the xSwap feature.

• Trade their assets across multiple networks using the Swap 4 feature.