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Galaxy Digital files for an ETF that will track Bitcoin futures

Updated: Aug 23, 2024
Published: Aug 17, 2021
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Gary Gensler said the SEC could consider ETFs that don't directly track Bitcoin's performance, and Galaxy Digital has now filed to launch a Bitcoin futures ETF.

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Galaxy Digital wants to launch a Bitcoin futures ETF

Galaxy Digital, one of the leading cryptocurrency firms, has filed with the United States Securities and Exchange Commission (SEC) to launch a Bitcoin futures exchange-traded fund (ETF). The fund will not directly track the performance of the leading cryptocurrency.

According to the SEC filing, the ETF doesn't invest in or seek direct exposure to the current "spot" or cash price of Bitcoin. Galaxy Digital said investors interested in seeking direct exposure to the price of bitcoin should consider an investment other than the ETF it filed with the SEC.

 

Galaxy Digital added that the fund could invest in securities of exchange-traded funds that are already trading in Canada or other jurisdictions amongst other pooled investment vehicles. The filing added that "The shares of these instruments represent an interest in a portfolio of Bitcoin."

SEC to deal with numerous Bitcoin futures ETFs

The US SEC has been reluctant to approve a single ETF tracking the spot price of a cryptocurrency. However, Gary Gensler pointed out a few weeks ago that the regulatory agency is open to approving an ETF that seeks indirect exposure to cryptocurrencies.

Since then, five Bitcoin futures ETF applications have been submitted to the SEC, including that of Galaxy Digital. In addition to these, the US SEC will have to review nine Bitcoin and three Ethereum ETF applications on its desk.

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