Crypto is a ‘long-term play’ we’re building out now: Global X exec

The buildout of blockchain use cases will play large role in valuing crypto assets, according to Global X head of thematic solutions

article-image

whiteMocca/Shutterstock modified by Blockworks

share

Global X, an ETF issuer, is adopting a gradual approach to expanding its crypto business, aligning with the evolving use cases surrounding blockchain technology.

The company last week introduced two separately managed account (SMA) offerings based on digital assets. These SMAs will be accessible through Eaglebrook Advisors’ platform, which is utilized by registered investment advisers (RIAs).

One of the indexed offerings holds the two largest crypto assets, while the other’s index gives market capitalization-proportional exposure to the 10 largest tokens, with a cap at 40%.  

“[The SMAs] are about getting into direct crypto exposure in a way that we thought was responsible,” Scott Helfstein, Global X’s head of thematic solutions, told Blockworks. “This just allows us to provide some tools and begin to build interest in what we think is a long-term play.”

The utility of crypto assets will ultimately drive their valuations, he added — a fact not necessarily true today as various use cases have not yet been realized.  

“But as we talk about moving real estate onto the blockchain [and] as we talk about 3D printing and advanced fabrication where you’re transacting through Ethereum smart contracts, all of those become the use cases that ultimately set the value for these currencies,” Helfstein said. “We’re a ways away from that, but still getting to play in the space we think is important.”

The SMAs build upon Global X’s crypto and blockchain offerings. The fund group, which manages $41 billion in assets across its more than 100 US ETFs, launched its Global X Blockchain ETF (BKCH) in July 2021. 

It unveiled the Global X Blockchain and Bitcoin Strategy ETF (BITS), which blends investments in crypto stocks and bitcoin futures contracts, a few months later. 

The firm added a Metaverse ETF (VR) to its lineup in April 2022, and has invested in its team and research capabilities in an effort to educate investors about the sector.

“What we’re trying to do is create a full toolkit rather than saying here’s a ticker to buy,” Helfstein said. “Here’s a ticker to look into, here’s some research to help you make a decision, and by the way, there are different flavors.”

Asset growth slows as space matures

Despite extended periods on the market, BKCH, BITS and VR have roughly $80 million in combined assets. 

While the ProShares Bitcoin Strategy ETF (BITO) and the Amplify Transformational Data Sharing ETF (BLOK) have gathered significant assets in their fund categories — about $460 million and $820 million, respectively — most competing offerings have not.  

Read more: Blockchain ETF issuers with ‘crypto street cred’ may come out on top

While early assets into thematic ETFs are driven by retail investors, large companies — such as wirehouses Morgan Stanley, JPMorgan and UBS — drive scale later on, Helfstein said. 

“Quite frankly, most firms are not encouraging advisers to go out and talk about blockchain and crypto as an area,” the executive noted.

That is likely to change as blockchain technology “moves up the adoption curve” and the companies involved in the space get bigger, Helfstein added.

The Global X Lithium and Battery Tech ETF (LIT), which launched in 2010 and has grown to more than $3 billion in assets under management, particularly gained traction as the electric vehicle market grew.  

“That’s one where we had this sitting on our shelf for a really long time before it was a billion-dollar fund,” he said. “So if you’re going to play in the thematic space and you want to be early in the adoption cycle, you’re going to have to live with this.”

The metaverse space is also in its very early stages. 

Though a blockchain-powered Web3 has a chance to improve upon Web2, players in the space have their work cut out for them to prove out the value proposition, Helfstein said. 

“People ask what replaces Google?” he added. “I don’t know that it goes away, but the environment changes when I can own my private data in a digital wallet and I can either trade it for access to my gmail or they have to pay me for it. That’s a very different ecosystem.”


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Featured.png

Research

Helium stands at a pivotal moment in its evolution as a decentralized wireless network, balancing rapid growth, economic restructuring, and global expansion. With accelerated growth in domestic DAUs and Hotspots supporting its network, Helium is leveraging strategic partnerships and innovative proposals to scale internationally. The recent implementation of HIP 138, “Return to HNT,” has unified its token economy under HNT, simplifying participation and strengthening liquidity, while HIP 139’s phase-out of CBRS refocuses efforts on scalable Wi-Fi offload. Meanwhile, governance shifts under HIP 141 raise questions about centralization as Nova Labs consolidates control over the roadmap.

article-image

While the head of Base may support legal sex work, Coinbase policies prohibit said workers from using its exchange.

article-image

EVM bottlenecks fundamentally hold back Ethereum’s scalability

article-image

In 2011, WikiLeaks faced a financial blockade imposed by the US government. It was Bitcoin’s first major test.

article-image

Kado’s founder Emery Andrew spoke to Blockworks about the acquisition and what’s next for the team

article-image

LayerZero’s Bryan Pellegrino chatted with Blockworks about the firm’s next steps and its 10-year runway

article-image

Colosseum co-founder Matty Taylor is seeing “high-performance [Solana] founders showing a lot of interest in private trading technology”