Another Futures-backed Bitcoin ETF Filed for “Significant Investor Protections”
This time it’s from Mike Novogratz’s Galaxy Digital under the Investment Company Act of 1940.
Mike Novogratz’s Galaxy Digital has filed for a Bitcoin futures exchange-traded fund (ETF) with the SEC.
The Fund will not invest directly in Bitcoin rather in the futures trading on the regulated platform CME.
This prospectus has been filed under the Investment Company Act of 1940, much like four other applications from VanEck, ProShares, Valkyrie, and Invesco, after SEC Chair Gary Gensler signaled openness to futures-based ETFs that provides “significant investor protections.”
The SEC, however, has yet to approve a single crypto ETF while several, in double digits, have been filed with the US regulator.
Unlike the physically-backed ETF that would track Bitcoin more closely, “Bitcoin futures ETFs, if approved by the SEC, could cost investors 5-10 percentage points in annual returns by rolling contracts from one month to the next, potentially limiting their appeal,” wrote ETF Analysts for Bloomberg, Eric Balchunas and James Seyffart in a note.
Galaxy also filed for a Bitcoin ETF in April and is the sub-advisor to the CI Galaxy Bitcoin ETF, which has $256 million in assets along with the CI Galaxy Ethereum ETF, which has almost $510 million in assets.