The New York-based broker-dealer joins the growing list of U.S. crypto companies striving for a Bitcoin futures ETF.
Four months after applying for a Bitcoin exchange-traded fund (ETF) backed by the actual underlying asset, Galaxy Digital is making another attempt, this time, with an investment vehicle tied to Bitcoin futures.
In keeping with the U.S. Securities and Exchange Commission (SEC) submitting on Tuesday, the Galaxy Bitcoin Technique ETF hopes to register under the Funding Company Act of 1940.
The brand new fund doesn’t make investments instantly in Bitcoin, in search of an alternative to supplying capital appreciation primarily through the lively administration of Bitcoin futures contracts.
At the moment, the Chicago Mercantile Exchange (CME) is the only regulated buying and selling platform providing such contracts.
If permitted, the Galaxy Bitcoin Strategy ETF will be listed on the Nasdaq alternate, reads the document.
Bitcoin ETF sees new hope
Galaxy Digital is the newest asset supervisor to file for a Bitcoin futures ETF, which at the moment seems to be probably the most viable choice to launch a regulated crypto funding vehicle within the U.S.
Citing possible market manipulation and the asset’s volatility, the SEC is yet to approve any ETF tied to actual Bitcoin. However, earlier this month the Commission’s chair Gary Gensler hinted that the regulator would reasonably favor ETFs tied to CME-traded Bitcoin futures.
Gensler’s remarks brought a renewed hope as several companies, together with Invesco, VanEck, and, most lately, Valkyrie Investments, rapidly moved to file for such a product, although there’s no assure that the regulator will approve it anytime soon.
Galaxy’s filing with the SEC follows the corporate’s Q2 2021 assertion on financial results, with more than $1.6 billion in assets under management reported.
In June, the agency introduced that it’s also serving as a liquidity provider for Goldman Sachs’ Bitcoin futures trading desk.