Galaxy Digital becomes latest firm to file for a bitcoin ETF


Galaxy Digital filed for a bitcoin exchange-traded fund (ETF) on Monday, according to a new S-1 with the Securities and Exchange Commission (SEC). 

The Galaxy Bitcoin ETF filing names NYSE Arca as the intended exchange venue. Per the filing, Galaxy has yet to name a custodian, administrator or transfer agent and will likely submit amended filings as these roles take shape and become public.

Galaxy trades publicly in Canada, and already acts as sub-advisor to a Canadian bitcoin ETF offering sponsored by CI Financial, the CI Galaxy Bitcoin ETF. That particular product began trading on the Toronto Stock Exchange last month

That product utilizes the Galaxy Bitcoin Index, which is owned and calculated by Bloomberg services. The Galaxy Bitcoin ETF, if approved, would also utilize the index as its pricing mechanism.

"The Index is designed to measure the performance of a single bitcoin traded in U.S. dollars," said the filing.

The end-of-day price of the net asset value of the ETF, or the pricing of the underlying holdings each day, is determined using the Bloomberg Crypto Price Fixings' mid-price for bitcoin. It's a "simple average" of the price of bitcoin using inputs from real-time pricing sources, according to the S-1. 

The submission comes after a strong Q4 report from the firm. CEO Mike Novogratz said the crypto bank is seeing growth across asset management, trading and its newest addition, mining. The Q4 report also revealed plans to conduct a secondary listing on a U.S.-based venue. 

The Galaxy filing joins a number of other submissions, including NYDIG, Fidelity and First Trust/SkyBridge. The U.S. has seen an increase in submissions since a wave of Canadian approvals, including the CI Galaxy Bitcoin ETF. 

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May 5, 2022, 3:17PM UTC