Mike Novogratz’s cryptocurrency fund Galaxy Digital has filed an application with the US Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) for Bitcoin.
The financial instrument is planned to be placed on the NYSE Arca exchange. The Bitcoin ETF price will be calculated based on the Bloomberg Galaxy Bitcoin Index, which tracks Bitcoin’s performance in USD. The management of the investment company believes that such a product will provide an opportunity for traditional investors to enter the cryptocurrency market using Bitcoin for investing in stocks, and not for direct trading.
In March, the Ontario Securities Commission approved Galaxy Digital’s application to launch a Bitcoin ETF, which began trading on the Toronto Stock Exchange. Now the investment company, which manages assets worth about $ 400 million, intends to introduce a similar product to the American market.
As a reminder, SkyBridge Capital, New York Digital Investment Group (NYDIG) and ETF VanEck have also submitted applications to the SEC to launch a Bitcoin ETF and are awaiting a decision from the regulator. In addition, asset management company Grayscale Investments recently announced its readiness to convert the Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF after SEC approval.
However, the Commission is wary of such investment products due to possible market manipulation, so it has not yet approved a single request. Unlike its northern neighbor, the US has been slow to adopt crypto ETFs. The American regulator is not sure that the market can be ready for such innovations.
Galaxy Digital CEO Mike Novogratz believes that the US government should change its approach to the digital asset industry, namely to approve the launch of cryptocurrency ETFs and start developing the digital dollar.
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