Bitcoin Exchange Traded Funds (ETFs) continue to rise when a new player enters the Canadian market on March 9th.
In a press release on Monday, Galaxy Digital Capital Management, a subsidiary of Galaxy Digital’s Financial Services and Investment Department, confirmed that it is likely to start trading the CI Galaxy bitcoin ETF this week.
ETF target gets a great competitor
The launch will allow Galaxy to join the TSX Purpose Bitcoin ETF as one of the leading ETF products in North America, with no apps approved yet by US regulators.
The purpose has generated a lot of interest and related volumes since the ETF was sent out last month, around the same time it introduced Galaxy with the regulators, according to Cointelegraph reports.
“We believe this new digital asset class offers tremendous opportunities for growth and diversification,” said Steve Curtis, Partner and Head of Asset Management at GDAM, which will provide retail to businesses with Galaxy, in a press release.
“The CI Galaxy Bitcoin ETF provides an easy and secure point of contact for traditional investors to access bitcoins.”
Negative GBTC returns with a record
Institutional demand for access to bitcoin is not affected by price volatility and negative press: A recent Goldman Sachs survey found that 40% of customers actually participate.
Meanwhile, the ETF barrier provides new competition to alternative market offerings, especially the Grayscale Bitcoin Trust, which continues to trade at a discount of around 2% on net worth.
Confidence traded at a record 13% discount last week, with new players currently not allowed to buy as a result of Grayscale’s League Closing Plan. Analysts note that if historical behavior repeats itself, a negative premium could predict the next stage in Bitcoin’s price.
GBTC buyers have to pay a 2% administration fee, which is higher than new ETFs.
“I think our ETF has very competitive pricing, broad CI and Galaxy capabilities, and a proven track record in managing alternative investments and digital assets,” said Curt McAlpin, chief executive of CI Financial, which will manage the ETF, about adjusting to the market. … …