Canadian securities regulators have approved a third Bitcoin ETF as CI Global Asset Management prepares their BTC-based offering. The CI Galaxy Bitcoin ETF will launch tomorrow, March 9, following the symbol BTCX on the Toronto Stock Exchange. The new ETF will follow the Purpose Bitcoin ETF (BTCC) and Evolve Bitcoin ETF (EBIT), both launched merely last month. The slate of Bitcoin ETF drives in North American markets is added sign of Bitcoin growing an institution-friendly asset, injecting a whole new class of conservative investors into the world of crypto.
As per the reports, CI GAM will manage the funds and advised by the merchant bank, Galaxy Digital, while its Bitcoin holdings will be owned and administered by Bloomberg Index Services Ltd. The CI Galaxy Bitcoin ETF (BTCX) intends to offer investors exposure to Bitcoin via funding undeviatingly. It will price the BTCX holdings via the Bloomberg Galaxy Bitcoin Index. The company announced it addressed pricing, custody, audit, and public interest concerns in a regulated investment fund to grant support to the fund. It acts as the fund’s investment and portfolio manager, while New York-based crypto exchange Gemini Trust will perform the custodian’s functions.
CI GAM plans to merge BTCG with BTCX
The Bitcoin ETF would offer stockholders direct exposure to Bitcoin value by buying stock instead of its asset. Besides, the non-redeemable investment fund intends to obtain capital appreciation via a long-term holding strategy. To attract more buyers, the Bitcoin ETF will have no limit on minimum purchases. After the ETF is issued, CI GAM proposes to merge its closed-end fund (BTCG) into the BTCX.
However, other Bitcoin ETFs currently launched in Canadian markets have been a success. The Purpose Bitcoin ETF drew more than $470 million one week after launching in February. Additionally, the Evolve Bitcoin ETF recently has made over $54 million in AUM (Assets Under Management). Moreover, the SEC has frequently rejected Bitcoin ETF applications in the U.S. because manipulation can quickly occur in the Bitcoin markets. However, the newly inaugurated Biden administration has encouraged hopes that regulators might take a second look at Bitcoin ETF applications. Valkyrie Digital Assets resubmitted an application previously retreated in September 2019.
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