Galaxy Digital has filed with the US SEC to launch a Bitcoin futures ETF hours before reporting losses in the most recent quarter.
Galaxy Digital Wants To Launch A Bitcoin (BTC) Futures ETF
Galaxy Digital has filed with the US Securities and Exchange Commission (SEC) to list a Bitcoin futures ETF. The digital asset management company wants to launch an ETF that doesn’t directly track the price of the leading cryptocurrency.
The Galaxy Bitcoin Strategy ETF is expected to provide investors exposure to Bitcoin futures and other Bitcoin exchange-traded funds instead of the direct spot price of Bitcoin. Galaxy Digital said the fund would invest in Bitcoin futures and other Bitcoin ETFs launched in countries like Canada and Brazil.
The application comes barely two weeks after SEC chair Gary Gensler said the regulatory agency might be open to approving an ETF that doesn’t directly track the spot price of cryptocurrencies. Since then, five companies have filed to launch Bitcoin futures ETFs. The Bitcoin futures ETFs are expected to gain the SEC’s approval as they align with what the regulatory agency requires.
The SEC has declined several cryptocurrency ETFs in the past. The regulatory agency believes that more regulation is needed in the crypto space to provide investor protection before ETFs tracking the spot prices of cryptos are approved.
Galaxy Digital Losses $175 Million In Q2
A few hours after filing for a Bitcoin futures ETF, Galaxy Digital reported its second-quarter earnings, and the company didn’t perform well. CEO Mike Novogratz revealed that the digital asset manager recorded a loss of $175.8 million in the previous quarter.
The losses could be attributed to a decline in the prices of Bitcoin and other leading cryptocurrencies. It comes despite Galaxy Digital reporting an increase in trading activities and managed assets during that quarter.
Bitcoin dropped from its all-time high above $64k to trade below $30k in the second quarter. However, the market is slowly recovering, and Bitcoin has been trading above the $40k mark for the past few weeks.
Currently, Bitcoin (BTC) is down by 3% and is trading above $45,400 on various cryptocurrency exchanges. The market recovery could continue for the next few months, and that could boost Galaxy Digital’s performance in the current quarter.