Mike Novogratz-owned cryptocurrency merchant bank Galaxy Digital is going to launch a public Bitcoin fund in Canada. Galaxy Digital is collaborating with the Canada-based investment firm CI Global Asset Management (CI GAM) for launching this bitcoin fund known as CI Galaxy Bitcoin Fund. With the launch of the Fund, the digital asset manager is strengthening its offering of digital assets in the country of Canada.
As reported by Business Wire on November 16, a preliminary prospectus was filed by CI Global Asset Management for the Fund’s initial public offering (IPO). The companies said in the announcement that the securities regulators have approved their filing and have provided them with a receipt of the preliminary prospectus for the IPO of their Bitcoin Fund.
CI Global Asset Management will be playing the role of the Fund’s manager. While on the other hand, Mike Novogratz’s Galaxy Digital will be serving as the sub-advisor of the Bitcoin Fund, as they revealed in the official announcement. The firm will perform all of the bitcoin trading.
Known as the closed-end investment fund, the main aim of the CI Galaxy Bitcoin Fund is to provide unitholders with an opportunity to have exposure to the leading digital currency Bitcoin. Class A Units and Class F Units will be offered through the fund at a price rate of $10 per unit. Furthermore, the announcement states that the investment will be directly made in the top-ranked digital currency by the fund via the token holdings of the fund. It will be priced with the help of the Bloomberg Galaxy Bitcoin Index. This index has been designed in a way that it will “measure the performance of a single bitcoin traded in U.S. dollars.”
This news has come one week after the cryptocurrency merchant bank announced its financial details for the third quarter of the year 2020. The firm claimed that it witnessed a Year-on-Year growth of approximately 75 percent in trading volumes during the past quarter. Moreover, it saw its net income increased to $44.3 million in the third quarter.