Galaxy wants to list ETF that have indirect exposure to bitcoin in the US – Money Times

Galaxy is a company well known in the American crypto market for being involved in mining, custody, investments, loans and more (Image: Galaxy Digital)

THE Galaxy Digital sent a request to the US Securities and Exchange Commission (SEC, the acronym in English) to list a index fund (ETF) that will invest in products with indirect exposure to bitcoin (BTC).

The “Galaxy Bitcoin Strategy ETF” will not offer direct exposure to cryptocurrencies, according to document Sent:

The Fund does not invest in or aim to gain direct exposure to the “market” or spot price of bitcoin. Investors looking for direct exposure to the bitcoin price should consider an investment other than this Fund.

The SEC is reluctant to approve structured products with direct exposure, meaning ETFs with more indirect methods can facilitate the approval process.

Gary Gensler, president of the SEC, had said that he and his team would review bitcoin ETF requests, “especially if they are limited to bitcoin futures traded by CME”.

According to Eric Balchunas, senior analyst of Bloomberg’s ETFs, a product that has exposure only to future contracts would be the most suitable offer possible to receive a Gensler approval:

Galaxy’s request is the fifth product investing in crypto futures to reach SEC authorities.

Plans to merge bitcoin futures contracts held in cash and traded at brokers registered with the US Commodity Futures Trading Commission (CFTC) to US treasury bonds, repurchase agreements and Canadian ETFs.

The Canada approved numerous of these crypto products and Galaxy’s fund may be exposed to these ETFs:

The Fund may invest in the securities of exchange traded funds, or “ETFs”, organized and listed for trading in Canada or other jurisdictions, and in other bundled investment vehicles.

Quotas on these instruments represent an interest in a bitcoin portfolio.

Galaxy acted as a sub-advisor of a ether based ETF from canadian CI Financial.

Did you like this news? Download our app to read, in just one click, this and more than 150 articles daily.