Galaxy Digital Bitcoin ETF to launch this week as exec eyes ‘compelling alternatives’


Bitcoin (BTC) exchange traded funds (ETFs) continue to proliferate as a new entrant enters the Canadian market on March 9th.

In a press release on Monday, Galaxy Digital Capital Management, a subsidiary of financial services and investment management company Galaxy Digital, confirmed that the CI Galaxy Bitcoin ETF is expected to start trading this week.

Purpose ETF gets major competitors

With the launch, Galaxy will join the TSX Purpose Bitcoin ETF as one of the pioneering ETF products in North America. US regulators have yet to approve a single application.

As Cointelegraph reported, Purpose has seen a lot of interest and tonnage since launching its ETF last month, around the same time Galaxy filed with regulators.

“We believe that the emerging digital asset class offers compelling growth and diversification opportunities,” commented Steve Kurz, partner and head of asset management at GDAM, who will lead trading in the Galaxy product, in the press release.

“The CI Galaxy Bitcoin ETF offers traditional investors an easy and secure access point to get exposure to Bitcoin.”

GBTC’s negative premium is recovering from the record

Institutional demand for Bitcoin exposure has been unaffected by price volatility and negative press. A recent survey by Goldman Sachs found that 40% of customers are already involved.

The ETF boom is now offering new competition for alternative market offerings, in particular the Grayscale Bitcoin Trust (GBTC), which continues to trade at a discount of around 2% on its net asset value (NAV).

GBTC Premium Chart. Source: Bybt

Last week, the trust’s shares traded at a record discount of 13%. Newcomers are currently not allowed to purchase under Grayscale’s regular closure plan. Analysts noted that the negative premium could predict the next phase of the Bitcoin price bull run if historical behavior repeats itself.

GBTC buyers have to pay a 2% management fee, which is higher than that of the newcomer ETFs.

“I believe our ETF is characterized by its extremely competitive price and the extensive capabilities and track record of CI and Galaxy in managing alternative and digital assets,” added Kurt MacAlpine, CEO of CI Financial, who will lead the ETF. for market adjustment.

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