Galaxy Digital Becomes the Latest Firm to File for a Bitcoin Futures Exchange-Traded Fund (ETF).
Galaxy Digital, one of the leading cryptocurrency asset management businesses led by Mike Novogratz, has filed for a Bitcoin Strategy ETF. There has been a noticeable increase in the number of companies filing for a Bitcoin Strategy ETF that provides investors with exposure to the Futures market. This is mostly due to statements made by US Securities and Exchange Commission Chairman Gary Gensler, who said that a Bitcoin ETF based on the futures market would have a better chance of approval. The official filing made it clear that the fund would not invest directly in Bitcoin, confirming Gary Gensler’s views.
The fund would be called Galaxy Bitcoin Strategy ETF and the fund seeks to provide capital appreciation primarily through actively managed exposure to bitcoin futures contracts. The Fund does not invest directly in bitcoin.
Invesco filed the first Bitcoin Futures ETF application, followed by VanEck and now Galaxy Digital. Along with rising Bitcoin demand, regulatory scrutiny has intensified, as the SEC and US lawmakers have pushed for appropriate crypto market regulation to assure investor protection.
Will the SEC Approve Bitcoin Futures-Based ETFs?
Bitcoin proponents were pretty sure of seeing the first US-approved Bitcoin ETF this season, as the leading cryptocurrency’s popularity, demand, and market cap have skyrocketed. When the SEC rejected all Bitcoin ETF proposals in 2017, many believed the market’s rise would drive regulators to approve the ETF. However, Gensler has said that there is no set deadline for approval and that even if the ETF is allowed, severe regulatory standards will apply.
The SEC has already postponed its ruling on three Bitcoin exchange-traded funds, including VanEck and Wisdom Tree. Given the spike in Bitcoin Futures ETF filings, the likelihood of a physical Bitcoin ETF being approved by the SEC has decreased dramatically.
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