The New York Digital Investment Group, or NYDIG, has filed documents with the US Securities and Exchange Commission to launch a new Bitcoin Trading Fund (BTC).
On Tuesday, NYDIG sent an S-1 file to the SEC for a Bitcoin ETF. The statement states that NYDIG Trust Company LLC is a manager of the fund’s bitcoins and that Morgan Stanley is a licensed member.
As a licensed participant, Morgan Stanley is expected to sell shares to the public at prices that reflect the fund’s assets, supply and demand and underlying market conditions. Shares will be traded on the NYSE Arca under an as yet undefined symbol.
According to the summary of the prospectus:
“The investment objective of the credit is to reverse Bitcoin’s price development minus trust costs. Trust will not reflect the results of any benchmark or indicator.”
“In an effort to achieve its investment goal, the mutual fund will have Bitcoin.”
NYDIG is very active in the crypto space as it seeks to provide more institutional access to digital assets such as Bitcoin. In November and December 2020, the company raised $ 150 million through two separate cryptocurrency investment funds. NYDIG purchased a BitLicense license from the New York State Financial Services Department in 2018.
Stone Ridge, the parent company of NYDIG, is one of the largest institutional Bitcoin owners.
Finding the Bitcoin ETF has been a long way off, at least in the United States, as many fund issuers have tried unsuccessfully to get government approval.
Canada recently approved the first listed Bitcoin ETF in North America, allowing institutional investors access to BTC investments directly, without derivatives.