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Bitcoin futures ETF, Galaxy Digital applies to SEC

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Galaxy Digital , an investment firm headed by Mike Novogratz , has submitted to the SEC the request for approval of a new ETF based on Bitcoin futures.

Compared to other ETF products on which the Securities and Exchange Commission has not yet ruled, this time the exchange traded fund does not invest directly in Bitcoin but in Bitcoin futures . In the United States, the majority of Butcoin futures traffic volume is handled by the Chicago Mercantile Exchange ( CME ).

Mike Novogratz’s choice is not accidental. Galaxy Digital CEO has practically “tapped” recent statements by SEC Chairman Gary Gensler who stated that the SEC would be more likely to approve a Bitcoin ETF not directly exposed to BTC but to futures.

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Galaxy had already submitted an application for approval for another ETF , this one directly exposed on BTC, but did not want to miss this opportunity.

The SEC’s delay in approving Bitcoin ETFs and the breakthrough in futures

A Bitcoin futures-based ETF could mitigate the risk for investors by not being directly linked to BTC. In fact, at the moment the SEC has delayed in approving ETFs precisely due to the high volatility of Bitcoin which makes it an extremely risky product for investors.

However, in other markets around the world, Bitcoin ETFs are already a reality, for example in Canada and Brazil. From this point of view, the United States is far behind. It remains to be seen whether Galaxy DIGital’s product will meet the SEC’s requirements and concerns.

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Surely a Bitcoin ETF in the United States would open the doors of the sector to institutional investors, increasingly interested in Bitcoin, but looking for investment products more similar to those of institutional markets. A possible approval could contribute to the further growth of the price of Bitcoin, which already now, despite the decline to 44,000 dollars, thanks to the presence of the institutional ones, is aiming straight to break through again 50,000 dollars.

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