The investment company Galaxy Digital Holdings revealed that it is joining a growing number of companies hoping to sponsor Bitcoin exchange-traded funds (ETFs). Novogratz’s cryptocurrency company applied to the U.S. Securities and Exchange Commission (SEC) on Monday to launch a product called the “Galaxy Bitcoin ETF.”

Galaxy Digital wants to provide Bitcoin ETF

On Monday, Galaxy Digital Holdings (TSX: GLXY) filed a Form S-1 registration with the U.S. Securities and Exchange Commission (SEC) for approval of the new Bitcoin ETF. The “Galaxy Bitcoin ETF” document was submitted on April 12, 2021, and is awaiting approval from the U.S. regulators along with seven other Bitcoin ETF competitors. Galaxy Digital is an investment company led by Michael Novogratz. Michael Novogratz is a former executive of the macro strategy hedge fund Fortress.

“The Galaxy Bitcoin ETF is an exchange-traded fund that issues common stocks with beneficial interests that are traded on the New York Stock Exchange Arca,” the Galaxy ETF application documents stated. “The trust fund’s investment objective is to reflect the performance of the Bloomberg Galaxy Bitcoin Index, minus the trust fund’s expenditures and other liabilities. In order to achieve its investment objective, the trust will hold bitcoins and will base it on the value of the index Its stocks are valued daily, and the index is calculated based on data selected by Bloomberg Index Services Ltd. from Bitcoin pricing sources.”

Eight Bitcoin ETF applications awaiting approval

Novogratz has always been a Bitcoin bull market and regularly talks about the cryptocurrency economy. On April 13, Novogratz was very happy when Bitcoin (BTC) hit an all-time high (ATH) of $63,769 per unit. “My favorite song is so good,” he Tweet. Novogratz added: “Bitcoin, please go to Moon Song.” The Galaxy Bitcoin ETF filings pointed out that the promoters do not intend to directly buy and sell BTC.

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A trust is an exchange traded fund. Except for liquidation or special circumstances,” the document added. “The trust has no intention to directly buy or sell bitcoin, although the trust may instruct the custodian to sell bitcoin to pay certain fees. The creation and redemption of shares will take place in the following forms of “physical” transactions: [ ] The shares should be attributed to the number of bitcoins per share. “

The registration of the Galaxy Bitcoin ETF took place before the recent resubmission of Kryptoin last week. Galaxy will now become the eighth BTC ETF applicant hoping to obtain SEC approval. In addition to the Milky Way, there are Valkyrie, Vaneck, Fidelity, NYDIG, Wisdomtree, First Trust & Skybridge and Kryptoin.

What do you think of Galaxy Digital’s Bitcoin ETF file? Let us know your thoughts on this topic in the comments section below.

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