Ben Strack

<div id="highlights-block_62a1de3c35103" class="highlights">
 <ul>
 <li>Firm could look to bring crypto products focused on yield or volatility management, digital assets product head Adam Sze says</li>
 <li>Sze seeks to combine experience in traditional finance and crypto ETPs at the thematic ETF issuer</li>
 </ul>
 
</div>



A new head of digital asset products at Global X is hoping to bring his traditional finance and crypto ETP background to build out educational resources and add to the company’s thematic product lineup.



The New York-based fund group <a href="https://cms.blockworks.co/global-x-poaches-21shares-exec-to-lead-digital-assets-product-push/" target="_blank" rel="noreferrer noopener">brought aboard</a> Adam Sze last month from Swiss ETP (exchange-traded product) issuer 21Shares. Before that, he worked for more than a decade at New York Life Investments, including as the firm’s director of product development.&nbsp;



Sze began learning about crypto in late 2017, and though New York Life considered launching products within the space, he said, the company ultimately decided against it.



The executive jumped ship to 21Shares in August 2021 and spent the latter half of his 10-month tenure there as director of ETPs. Sze led the design, implementation and launch of more than a dozen physically-backed <a href="https://cms.blockworks.co/21-shares-expands-crypto-etps/" target="_blank" rel="noreferrer noopener">crypto ETPs</a> for the company, which manages more than $2 billion in assets.



“At 21Shares, I was able to combine my professional pursuits and my personal interests into a single role…I learned a lot about structuring digital asset products and also got a deeper education in the space,” he told Blockworks. “Now that I’m at Global X, I have the opportunity to get even more involved in the strategic planning and implementation for the firm’s digital asset initiative.”



Global X has 93 ETFs trading in the US with combined assets of roughly $40 billion, according to ETF.com. Its Global X Blockchain ETF (BKCH), which tracks a market cap-weighted index of companies in the blockchain space, launched last July and has about $60 million in assets.



The firm brought to market its Blockchain and Bitcoin Strategy ETF (BITS), which blends investments in crypto stocks and bitcoin futures contracts, last November. That actively managed fund oversees about $10 million.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“While it’s nice to have single-asset ETPs…I think where we’re truly going to make an impact and make a win is bringing out innovative solutions that address specific client needs, whether that’s yield or volatility management,” Sze said.&nbsp;</blockquote>



In addition to addressing such needs, the company seeks to offer exposure to certain sectors of the digital asset space through index-based products, though Sze declined to share specific segments the firm could target.&nbsp;



Matt Hougan, Bitwise Asset Management&#8217;s chief investment officer, noted during a panel at last month’s Permissionless event that he expects the share of indexing in the crypto space to rise from below 1% to 20% or 30% in the next 10 years.



Despite a focus on index-based products, Global X is mulling whether to re-apply for its proposed spot bitcoin ETF, Sze said, which the SEC rejected earlier this year.



Sze added that education is paramount for increasing adoption of digital asset investment products. While Global X aims to bolster its thought leadership to help financial advisers educate their clients on the space, the firm also intends to make its research available to retail investors.



The ongoing downturn in crypto markets won’t impact how Global X thinks about new crypto products, Sze said. Still, he explained, the drawdown — coupled with macro headwinds such as elevated inflation, rising interest rates, and supply chain issues — could affect the adoption timeline of such offerings.



“I think in the near term, there’s likely going to be muted interest in not only digital assets but risk assets as a whole as investors flock to safety,” he said. “But longer term, I think digital assets remain very compelling.”



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21Shares

Global X Plots Expansion of Crypto Products, Research

<div id="highlights-block_6273fecacca45" class="highlights">
 <ul>
 <li>Adam Sze spent more than a decade at New York Life Investment Management before his time at 21Shares</li>
 <li>Global X launched bitcoin and ether ETPs in Europe in March and more recently brought to market a metaverse ETF</li>
 </ul>
 
</div>



Asset manager Global X has poached an executive from the company with the world’s largest crypto ETP suite to be its head of digital assets product.&nbsp;



Adam Sze most recently worked as director of ETPs (exchange-traded products) for Switzerland-based 21Shares, where he led the team in the design, implementation and launch of more than a dozen physically-backed crypto ETPs.



New York-based Global X offers more than <a href="https://www.globalxetfs.com/explore/" target="_blank" rel="noreferrer noopener">90 ETF strategies</a> and has assets under management of roughly $40 billion.&nbsp;



The hire comes about two months after Global X launched its first physically backed crypto ETPs in Europe. The products, listed on Deutsche Börse Xetra in Germany, invest directly in bitcoin and ether.



Global X had filed in July 2021 <a href="https://cms.blockworks.co/global-x-adds-to-stack-of-bitcoin-etfs-proposed-to-sec/" target="_blank" rel="noreferrer noopener">to launch a bitcoin trust</a>, though the SEC has not yet approved such a product.



&#8220;The digital asset space has scaled from a decentralized currency to a digital economy, and the use case for digital assets has expanded to allow for the creation of applications that leverage the advantages of blockchain technology,&#8221; Global X Head of Product Development Alex Ashby said in a statement.&nbsp;



Before working at 21Shares, Sze held senior-level roles on product teams at New York Life Investment Management, covering traditional and alternative investment assets. He worked at the company for more than 12 years, according to his LinkedIn profile.&nbsp;



He joins Global X as the company is looking to expand its lineup of crypto thematic products and bolster its suite of crypto ETPs in Europe, Sze said in a statement.



A spokesperson for the firm declined to comment on specific potential future products, but noted that the company “is committed to cryptocurrency as an asset class.”&nbsp;



Global X has already launched several crypto-related ETFs in the US, including its Blockchain ETF (BKCH), which it brought to market last July. Its <a href="https://cms.blockworks.co/global-x-offers-different-type-of-bitcoin-futures-etf/" target="_blank" rel="noreferrer noopener">Blockchain and Bitcoin Strategy ETF</a> (BITS) and its <a href="https://cms.blockworks.co/global-x-latest-etf-issuer-to-test-out-the-metaverse/" target="_blank" rel="noreferrer noopener">Metaverse ETF</a> (VR), began trading in November and April, respectively.



Though a 21Shares spokesperson did not immediately comment on Sze’s departure, the company last week announced the hire of former Uber executive Karan Chawla as its vice president of product.&nbsp;



Chawla will focus on 21Shares’ product roadmap to offer investors access to DeFi protocols, according to a company statement, and will seek to further drive institutional adoption of digital assets.



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