Categories: News

Mike Novogratz’s Galaxy Digital to Launch Bitcoin Fund in Canada

Galaxy Digital, the crypto investment management firm founded by bitcoin bull Mike Novogratz, has revealed plans to launch a bitcoin fund in Canada.

In a statement published Nov. 16, Galaxy Digital said it has partnered with major Canadian fund manager CI Global Asset Management for the launch.

The fund is called the “CI Galaxy Bitcoin Fund” and it will be open to the general public. Galaxy Digital, which primarily focuses on corporate investors, has since received approval from securities regulators for its preliminary prospectus for an initial public offering (IPO), it added.

Per the announcement, the fund is “a closed-end investment fund” that will invest directly in bitcoin (BTC) and will be priced using the Bloomberg Galaxy Bitcoin Index. The index is designed to measure the performance of a single bitcoin traded in U.S. dollars.

The IPO will consist of Class A and Class F units at a price of $10 each. In turn, Galaxy Digital will allocate the buyer the equivalent in bitcoin from its own holdings. It said the units “are being offered on a best-efforts basis in each of the provinces and territories of Canada.”

Galaxy Digital will be the sub-advisor for the CI Galaxy Bitcoin Fund, responsible for executing all bitcoin trading activities. CI Global will act as the fund’s manager.

As news.Bitcoin.com reported a few days ago, Galaxy Digital acquired two crypto companies – Drawbridge Lending and Blue Fire Capital – in anticipation of a “bigger wave of institutional demand” for bitcoin.

In the third quarter of 2020, the firm reported a 75% increase in traded volumes, year-on-year, to $1.4 billion. Assets under management reached $407 million, inclusive of $82 million in passive BTC and index funds. Q3 net profit came in at $44.3 million compared to a loss of $68.2 million a year ago, thanks largely to a sharp rally in the price of BTC.

What do you think about Galaxy Digital’s planned bitcoin fund in Canada? Let us know in the comments section below.

The post Mike Novogratz’s Galaxy Digital to Launch Bitcoin Fund in Canada appeared first on Bitcoin News.

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