Galaxy Digital is making another try, this time with an investment vehicle connected to Bitcoin futures, four months after filing for a Bitcoin exchange-traded fund (ETF) backed by the real underlying commodity.
The Galaxy Bitcoin Strategy ETF seeks to register under the Investment Company Act of 1940, according to a filing with the US Securities and Exchange Commission (SEC) on Tuesday.
The new fund does not directly invest in Bitcoin, instead focusing on capital appreciation through active management of Bitcoin futures contracts.
The Chicago Mercantile Exchange (CME) is currently the sole licensed trading platform that provides such contracts.
According to the paper, if authorized, the Galaxy Bitcoin Strategy ETF will be listed on the Nasdaq platform.
Galaxy Digital is the most recent asset management to apply for a Bitcoin futures ETF, which looks to be the most realistic option for launching a regulated crypto investment vehicle in the United States.
The SEC has yet to approve an ETF linked to genuine Bitcoin, citing probable market manipulation and the asset's volatility.
However, Commission head Gary Gensler suggested earlier this month that the agency would prefer ETFs linked to CME-traded Bitcoin futures.
Galaxy's SEC filing comes after the firm announced more than $1.6 billion in assets under management in its Q2 2021 financial results.
In June, the company revealed that it is also a liquidity source for Goldman Sachs' Bitcoin futures trading desk.
As previously reported, Canada's securities authority authorized such a product, which debuted on March 9th on the Toronto Stock Exchange.
CI Global Asset Management works with Galaxy Digital Capital Management as a sub-adviser.
Furthermore, Canada has two additional Bitcoin ETFs in operation, but the SEC has been hesitant to approve even one.
More than a dozen applications have been denied, while VanEck and SkyBridge Capital's applications have lately been postponed.