Galaxy Digital and CI GAM to launch a Bitcoin ETF in Canada tomorrow

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Bitcoin exchange-traded funds (ETFs) continue to multiply as the CI Galaxy Bitcoin ETF hits the Canadian market on March 9.

In a press release on Monday, Galaxy Digital Capital Management, a subsidiary of financial services and investment management company Galaxy Digital, announced that the CI Galaxy Bitcoin ETF would likely start trading this week.

Purpose ETF gets major competitor

The launch will see Galaxy join the TSX Purpose Bitcoin ETF as one of the pioneering ETF products in North America, with US regulators yet to approve a single application.

As previously reported, Purpose has seen massive interest and associated volumes since its ETF went live last month, around the same time that Galaxy filed with regulators.

“We believe the emerging digital asset class presents compelling growth and diversification opportunities,” Steve Kurz, Partner and Head of Asset Management at GDAM, which will executive trading for the Galaxy product, commented in the press release.

“The CI Galaxy Bitcoin ETF offers a simple and secure access point for traditional investors to gain exposure to bitcoin.”

GBTC negative premium rebounds from record

Institutional demand for Bitcoin exposure has been unfazed by high price volatility and negative press, with a recent survey from Goldman Sachs indicating that 40% of users are already involved.

The ETF boom is meanwhile offering new competition for alternative market offerings, notably the Grayscale Bitcoin Trust (GBTC), which continues to trade at a discount of around 2% to its net asset value, or NAV.

Last week, the Trust’s shares traded at a record discount of 13%, with new entrants currently not permitted to purchase as part of Grayscale’s periodic closure schedule. Analysts said that if historical behavior repeats itself, the negative premium may foretell the next phase of the Bitcoin price bull run.

GBTC buyers are needed to pay a 2% management fee, higher than the newcomer ETFs.

“I believe our ETF stands out based on its highly competitive price point and CI and Galaxy’s extensive capabilities and track record in managing alternative investments and digital assets,” Kurt MacAlpine, CEO of CI Financial, which will run the ETF, added about market fit.

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