CI Global Asset Management Launches Third Bitcoin ETF in Canada with BTCX

CI Global Asset Management Launches Third Bitcoin ETF in Canada with BTCX

CI Global Asset Management (CI GAM) is set to launch the third Bitcoin exchange-traded fund (ETF) in Canada on March 9, 2021, with the CI Galaxy Bitcoin ETF (BTCX). The fund will begin trading on the Toronto Stock Exchange under the symbol BTCX, following the successful launch of the Purpose Bitcoin ETF (BTCC) and the Evolve Bitcoin ETF (EBIT) earlier this year. The approval of these Bitcoin ETFs marks a major milestone in the growing acceptance of Bitcoin as an institutional-grade asset and opens the door for more conservative investors to gain exposure to the world of cryptocurrencies.

The BTCX ETF will offer investors a direct investment in Bitcoin through the ETF structure, allowing them to gain exposure to the cryptocurrency without the need to manage or store Bitcoin directly. This ETF will be priced using the Bloomberg Galaxy Bitcoin Index, and it aims to provide long-term capital appreciation through the holding of Bitcoin.

CI Galaxy Bitcoin ETF to Be Managed by Galaxy Digital and Custodied by Gemini

The CI Galaxy Bitcoin ETF will be managed by CI GAM and advised by the merchant bank, Galaxy Digital. Bitcoin holdings will be securely managed by Bloomberg Index Services Ltd., with New York-based crypto exchange Gemini Trust acting as the custodian. This structure provides a secure and regulated environment for investors to gain exposure to Bitcoin without worrying about the complexities of directly holding and managing the digital asset.

CI GAM has addressed key concerns around pricing, custody, audit, and public interest, making the BTCX ETF a regulated investment fund. This new offering is designed to attract institutional and retail investors looking for a simple, regulated way to invest in Bitcoin.

Plans for Integration with BTCG Fund

In an effort to streamline its Bitcoin-focused offerings, CI GAM also plans to merge its closed-end fund, BTCG, with the BTCX ETF. This integration will create a more seamless and efficient offering for investors, further expanding the reach and potential of Bitcoin investment opportunities in Canada.

Bitcoin ETFs in Canada See Rapid Success

The Bitcoin ETF market in Canada has already seen significant success, with the Purpose Bitcoin ETF attracting over $470 million in assets under management (AUM) just one week after its launch in February 2021. The Evolve Bitcoin ETF also made a strong debut, surpassing $54 million in AUM. These successes underscore the growing demand for regulated Bitcoin investment vehicles in North America.

While the U.S. Securities and Exchange Commission (SEC) has repeatedly rejected Bitcoin ETF applications due to concerns about market manipulation, the newly inaugurated Biden administration has raised hopes that U.S. regulators may reconsider their stance on Bitcoin ETFs in the future. Recently, Valkyrie Digital Assets re-submitted an application that was previously withdrawn in September 2019, signaling renewed interest in Bitcoin ETFs in the U.S. market.

Conclusion: Bitcoin ETFs Signal Growing Institutional Interest

The launch of the CI Galaxy Bitcoin ETF (BTCX) in Canada is a significant step in the continued institutional adoption of Bitcoin and other cryptocurrencies. With the success of the Purpose and Evolve Bitcoin ETFs, BTCX is expected to further solidify Bitcoin’s role as a legitimate and widely accepted asset class for both institutional and retail investors. The growing interest in Bitcoin ETFs indicates that cryptocurrencies are becoming an increasingly mainstream investment, opening the door for even greater institutional involvement.

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