The investment company Galaxy Digital Holdings has revealed it is joining the growing list of firms looking to sponsor a bitcoin exchange-traded fund (ETF). Novogratzâ€™s crypto firm applied with the U.S. Securities Exchange Commission (SEC) on Monday to launch a product called the â€œGalaxy Bitcoin ETF.â€
Galaxy Digital Wants to Provide a Bitcoin ETF
Galaxy Digital Holdings (TSX: GLXY) filed a Form S-1 registration with the SEC on Monday in order to get approval for a new bitcoin ETF. The â€œGalaxy Bitcoin ETFâ€ filing was submitted on April 12, 2021, and joins the seven other bitcoin ETF contenders waiting for approval from the U.S. regulator. Galaxy Digital is an investment company led by Michael Novogratz, a former executive from the macro-strategy hedge fund Fortress.
â€œGalaxy Bitcoin ETF is an exchange-traded fund that issues common shares of beneficial interest that trade on NYSE Arca,â€ The Galaxy ETF filing notes. â€œThe trustâ€™s investment objective is to reflect the performance of the Bloomberg Galaxy bitcoin Index, less the trustâ€™s expenses and other liabilities. In seeking to achieve its investment objective, the trust will hold bitcoin and will value its shares daily based on the value of the Index, which is calculated based on data from bitcoin pricing sources selected by Bloomberg Index Services Limited.â€
Eight Bitcoin ETF Filings Waiting for Approval
Novogratz has been a bitcoin bull for quite some time and speaks about the crypto economy on a regular basis. On April 13, when bitcoin (BTC) saw a new all-time high (ATH) at $63,769 per unit, Novogratz was quite pleased. â€œA fine day for my favorite song,â€ he tweeted. â€œBitcoin Please Go To Moon Song,â€ Novogratz added. The Galaxy Bitcoin ETF filing notes that the sponsor does not plan to buy or sell BTC directly.
â€œThe trust is an exchange-traded fund. Barring a liquidation or extraordinary circumstances,â€ the filing adds. â€œThe trust does not intend to purchase or sell bitcoin directly, although the trust may direct the custodian to sell bitcoin to pay certain expenses. Creations and redemptions of shares will be effected in â€˜in-kindâ€™ transactions in blocks of [ ] shares based on the quantity of bitcoin attributable to each share.â€
The Galaxy Bitcoin ETF registration follows the recent Kryptoin re-filing last week. Galaxy will now be the eighth BTC ETF applicant hoping for the SECâ€™s approval. Besides Galaxy thereâ€™s Valkyrie, Vaneck, Fidelity, NYDIG, Wisdomtree, First Trust & Skybridge, and Kryptoin.
What do you think about Galaxy Digitalâ€™s bitcoin ETF filing? Let us know what you think about this subject in the comments section below.
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