Mike Novogratz: “ETF’s Are A Tipping Point For Bitcoin Adoption;” Galaxy Launches Low Fee BTC ETF
Despite the ongoing fee war in Canada's Bitcoin ETF market, they are relatively expensive in the ETF space. Players are moving on to Ether ETF.
BTCX is a Bitcoin exchange-traded fund (ETF) managed by CI Global Asset Management with Galaxy Digital as the Bitcoin sub-advisor which executes the trading on behalf of the ETF.
The ETF started trading on the Toronto Stock Exchange (TSX) on Tuesday with the lowest management fee of any Bitcoin ETF at just 0.40%.
As of writing, the product had 200,000 outstanding units, with 0.000193 BTC per unit. Its total net asset value is over $5 million, per the website.
This Bitcoin ETF is for those who want exposure to bitcoin, want capital growth over the long term, and can tolerate high risk. Kurt MacAlpine, CEO of CI Financial Corp., the parent company of CI GAM said,
“As market validation of cryptocurrencies continues to accelerate, we are offering investors a secure and lower-cost way to participate in the bitcoin market.”
“We believe that the CI Galaxy Bitcoin ETF will be investors’ preferred means of holding and trading bitcoin because it offers the lowest management fee of any bitcoin fund on the market.”
This fee war was started last month when Evolve Fund Group in Canada also lowered the price on its Bitcoin ETF (EBIT) to 0.75% from 1% to compete with the Purpose Bitcoin ETF (BTCC).
With just one day of a head start, BTCC saw more than $165 million worth of shares changing hands in its first day of trading alone compared to only $14.6 million for EBIT.
Despite the lowering of fees, it is relatively expensive in the ETF space as the median fee for passive equity products is 0.49%, while their active counterparts charge an average of 0.72%, as per Bloomberg.
“Bitcoin adoption has hit a tipping point, and investors don’t want to sit on the sidelines,” said Novogratz.
They have also obtained a receipt for the preliminary prospectus of CI Galaxy Ethereum ETF (the “Ether ETF”), the first ETF in the world to invest directly in Ether.
The competition is growing not only for Bitcoin products but also Ethereum as Evolve Funds Group also filed for an Ether ETF with the Canadian Securities regulators earlier this month.
Swiss investment product provider 21Shares, formerly known as Amun, is also listing Ethereum (ETH) and Bitcoin Cash (BCH) exchange-traded product (ETP) on Deutsche Boerse’s Xetra market.
At the beginning of last month, the firm had an “immensely successful launch” of the first Polkadot ETP and is now working on several more launches in the second and third quarters.