Mike Novogratz's cryptocurrency trading bank Galaxy Digital has applied to the SEC to launch a bitcoin futures ETF under the provisions of the Investment Company Act 1940.
Galaxy just filed for a Bitcoin Futures ETF registered under 1940 Act and that will ONLY invest in futures, which is as Gensler-ready as you can get. This futures filing #5.
Galaxy Digital filed an application in April that was based on the provisions of the Securities Act in 1933.
Earlier, SEC chief Gary Gensler said that the Investment Company Act of 1940 provided stronger investor protections. He stressed that a fund meeting the regulator's requirements could be approved.
Galaxy Bitcoin Strategy ETF is based solely on bitcoin futures, as are similar instruments from Wilshire Phoenix and VanEck. The structure does not involve investing in funds based on the first cryptocurrency, unlike Invesco and ProShares.
Bloomberg columnist Erik Balčunas noted that the intrigue lies in which of the two types of ETFs the SEC will approve. He stressed that this will happen at a time when the head of the regulator, Gensler, will make that decision.
Background on the issue of whether futures-only vs futures and other funds matters or not.
Canada registered North America's first bitcoin ETF in February. The regulator also approved the launch of CI Galaxy Bitcoin ETF, an exchange-traded fund from CI Global Asset Management and Galaxy Digital.
Recall that Mike Novogratz predicted US Securities and Exchange Commission approval of a bitcoin ETF in 2021.
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