- First North American Bitcoin ETF launches with a bang as US$165 million worth of shares traded on the first day
- Physically-settled Bitcoin ETF removes Bitcoin out of the tradeable supply and puts upward pressure on prices so long as demand remains constant
As one of several trading desks that is providing Bitcoin for Canada’s Purpose Bitcoin ETF, Galaxy Digital Holdings is also acting as the Bitcoin sub-advisor, executing trades on behalf of another Canadian Bitcoin ETF being filed, CI Galaxy Bitcoin ETF.
Galaxy Digital Holdings appears to be betting that by being at the nexus of supporting a Bitcoin ETF, it will position itself nicely, if or when the U.S. approves its first Bitcoin ETF.
The remarkable debut of the Purpose Bitcoin ETF on the Toronto Stock Exchange, where some US$165 million worth of shares were traded, sent Bitcoin higher into the weekend, clearing US$56,000 at one stage and giving it a market cap of US$1 trillion for the first time ever.
And while there are already a number of ETF-like Bitcoin products in Europe, as well as exchange-traded trusts such as the Grayscale Bitcoin Trust in the U.S., a full-fledged Bitcoin ETF out of the U.S. remains the Holy Grail.
The U.S. Securities and Exchange Commission (“SEC”) has repeatedly denied applications to offer cryptocurrency ETFs in the U.S., citing concerns over market concentration and manipulation, but the approval by Canadian authorities of a Bitcoin ETF may change things up.