Crypto asset management company Galaxy Digital led by Mike Novogratz, has filed for a Bitcoin Strategy ETF. The fund would be called Galaxy Bitcoin Strategy ETF and also the fund would not invest directly in Bitcoin.
The number of organizations filing for a Bitcoin Strategy ETF, which provides investors with exposure to the Futures market, has increased dramatically.
This is mostly due to statements made by US Securities and Exchange Commission Chairman Gary Gensler, who said that a Bitcoin ETF based on the Futures market would have a better chance of being approved.
The official filing made it clear that the fund would not invest directly in Bitcoin, confirming Gary Gensler’s views.
“The fund would be called Galaxy Bitcoin Strategy ETF and the fund seeks to provide capital appreciation primarily through actively managed exposure to bitcoin futures contracts. The Fund does not invest directly in bitcoin.
The first company to file for a Bitcoin Futures ETF was Invesco, which was followed by VanEck and now Galaxy Digital.
The SEC and US politicians have been urging adequate rules around the crypto industry to safeguard investor protection as Bitcoin demand has grown.
Will the SEC approve Bitcoin Futures-based ETFs?
Bitcoin proponents were optimistic that the first US-approved Bitcoin ETF will be released this season, given the rise in popularity, demand, and market capitalization of the leading cryptocurrency.
When the SEC, led by Jay Clayton, rejected all Bitcoin ETF proposals in 2017, many believed the market’s rise would persuade regulators to authorize the ETF.
However, according to Gensler, there is no set schedule for approval, and even if the ETF is allowed, it will be subject to stringent regulatory standards.
The SEC has already put off making a decision on three Bitcoin ETFs, including VanEck and Wisdom Tree. Given the increase in Bitcoin Futures ETF filings, the chances of a physical Bitcoin ETF receiving SEC clearance have drastically decreased.
