Galaxy Digital Holdings, a crypto-focused financial services company, is seeking regulatory approval to start a Bitcoin exchange of the future. The Security and Exchange Commission (SEC) has received the filings and is open to approving a Bitcoin future ETF.
If the Galaxy Bitcoin Strategy ETF is approved, it will allow the firm to invest in Bitcoin futures contracts and not directly in Bitcoin. Bitcoin future contracts are already being traded at Chicago Mercantile Exchange.
Galaxy Digital Holdings is still waiting for the approval of its April filing, and if Okayed, it will launch a Bitcoin ETF. Galaxy is among dozens of firms waiting for the SEC to decide whether to approve the Bitcoin ETFs. Investors are also monitoring keenly, which will be the first US Bitcoin ETF.
In the past, SEC Chairman Gary Gensler has cited market manipulation as a reason to be concerned and cautious about Bitcoin ETFs. Earlier this month, Gensler indicated he would approve Bitcoin’s future ETF under a 1940 mutual funds law.
That announcement did not impress many crypto enthusiasts and fund managers. Crypto enthusiasts believe that Bitcoin ETFs should be regulated under a 1933 ETFs law.
Firms looking to launch Bitcoin ETFs in the US include Fidelity, Wisdom Tree Investments, and Anthony Scraramucci’s SkyBridge Capital.