TL; DR Breakdown
- Galaxy Digital has presented SEC with an application for a Bitcoin ETF.
- SEC is yet to approve any of the many applications before it.
Many crypto proponents as well as major market players have long been hopeful that about the implementation of a Bitcoin ETF. Various market participants, including Gemini Exchange, Fidelity, and Van Eck, have tabled their ETF applications before the SEC. Now, another player, Galaxy Digital, is following suit. Galaxy Digital is an investment firm founded by Mike Novogratz who is also its CEO.
The firm filed its Bitcoin ETF application early on Monday 12th, 2021, making it another of the many entities that gave made a move to produce a functional Bitcoin ETF acceptable and approved by SEC (Securities and Exchange Commission).
Galaxy Digital has a Bitcoin ETF in Canada
This move comes just after the firm managed to launch an ETF via a subsidiary in Canada in March this year. This makes Galaxy Digital well-placed to present a strong proposal since its has already succeeded in Canada. However, it’s notable that the two markets aren’t an exact match and the US SEC has its own set of rules.
In the application, Galaxy Digital didn’t provide any list of administrators or custodians. It also didn’t cite any trustees. Its application follows another one by Fidelity Investments presented to the SEC in March. Van Eck also sent in its new application. Since the SEC acknowledged receipt of Van Eck’s application in mid-March, it means that the authority has about two weeks to reply. A Bitcoin ETF application by the same entity was turned down by SEC a few years ago, and Van Eck has been working to draft an acceptable proposal.
No ETF approved, yet
As noted, the Bitcoin ETF application by Galaxy Digital isn’t the first to reach SEC’s door, but the authority has instituted very stringent requirements that may have disqualified a lot of the previous proposals. SEC’s previous management cited issues of market manipulation and price volatility as some of the major reasons hindering ETF approvals.
The growing interest in a Bitcoin ETF comes at a time when the top coin is scoring huge gains in terms of both price and acceptance. Some analysts have projected Bitcoin to reach the highs of $400k as more money flows into the market fueled by institutional adoption.