CI Global Asset Management (CI GAM), a unit of Canadian wealth manager CI Financial, has filed and also secured a receipt for a preliminary prospectus for a Bitcoin ETF, working with diversified asset firm, Galaxy Digital.
The new CI Galaxy Bitcoin ETF (BTCX) will offer investors exposure to the crypto currency via an institutional-quality fund platform.
The ETF will directly invest in Bitcoin with its Bitcoin holdings priced using the Bloomberg Galaxy Bitcoin Index (the BTC). Owned and administered by Bloomberg Index Services, BTC helps gauge the performance of a single Bitcoin traded in US dollars.
The investment manager, which manages around C$231.8bn in assets, also provides a closed-end fund called CI Galaxy Bitcoin Fund. It started trading on the Toronto Stock Exchange last December.
CI Financial CEO Kurt MacAlpine said: “We are excited to build on our existing relationship with Galaxy which we believe has the deepest global expertise in the cryptocurrency market.”
CI GAM will manage the ETF while Galaxy Digital Capital Management (Galaxy Digital) will be the Bitcoin sub-adviser for the ETF and will carry out Bitcoin trading on behalf of the ETF.
Galaxy Digital focuses on digital asset and blockchain technology.
Canada emerges as Bitcoin hub
Through the latest move, CI GAM has become the third company to jump onto the Bitcoin ETF bandwagon.
Recently, digital asset manager 3iq too filed a preliminary prospectus for a Bitcoin ETF with the Ontario Securities Commission.
Earlier this month, Toronto-based Purpose Investments secured the clearance of Canadian securities regulators to launch a direct custody Bitcoin ETF.
The new Purpose Bitcoin ETF will enable investors to invest directly in physically settled Bitcoin instead of derivatives and will be directly backed by physically settled Bitcoin holdings. The new offering is said to have collected $421m in the first two days of its launch.