Galaxy Digital , the financial company led by Mike Novogratz -one of the US entrepreneurs most related to the crypto market- submitted the necessary documentation to the United States Securities and Exchange Commission (SEC) to request the approval of an exchange-trade-found (EFT) of Bitcoin (BTC) .
In this way, Galaxy joins Grayscale in requesting consent for the creation of an exchange-traded fund, focused on the leading crypto currency. The go-ahead from the SEC, which could take weeks or months, would revolutionize the crypto market once again.
According to documentation submitted by the Novogratz firm, the new ETF will trade on the NYSE Arca exchange if approved. The value of the shares, as the firm announced, will be determined by the Bloomberg Galaxy Bitcoin index. “In trying to achieve its investment objective, the ETF will hold BTC and value its shares daily based on the index,” reads the presented document.
Despite the media impact of the presentation of Grayscale or Galaxy for the approval of their ETF, the first firm to make a formal request to the SEC was VanEck, in early March. So far, there have not yet been approvals of this type in the United States, although the advance of other countries puts pressure on the body.
Canada has approved a few ETFs in recent months, one of which is owned by Galaxy. This is CI Galaxy Bitcoin , launched on March 9 on the Toronto Stock Exchange (TSX) thanks to a partnership between the Novogratz firm and CI Global Asset Management
Two weeks later, Brazil approved the first ETFs in Latin America: QR Capital and Hashdex. Both tools received approval from the Brazilian Securities Commission (CVM).