The $10 billion alternative asset management firm Stone Ridge’s Bitcoin subsidiary New York Digital Investment Group (NYDIG) is preparing for creating a Bitcoin (BTC) Exchange Traded Fund (ETF). The firm has even filed for this Bitcoin ETF with the United States Securities and Exchange Commission (SEC).
NYDIG Is Now Looking For An Approval From SEC
A recent filing with the US SEC reveals that NYDIG is planning to introduce a Bitcoin Exchange Traded Fund (ETF). After the filing, NYDIG is now looking for approval from the SEC. The firm is expected to get a green signal from the US independent agency.
If SEC grants approval to NYDIG for the fund, its BTC ETF will be available for trading on the New York Stock Exchange Arca. Once the fund goes live, the company will announce the ticker symbol ahead of initiating the process of trading.
The Form S-1 that the company filed with the SEC further reveals that the leading American investment banking and financial services firm Morgan Stanley will act as the initial Authorized participant of this BTC Exchange Traded Fund. Morgan Stanley is also likely to conduct the sale of its shares publicly.
Moreover, all of the bitcoins present in the trust fund will be held by NYDIG’s Trust Company. Delaware Trust Company will serve as the BTC ETF’s trustee. While on the other hand, asset management NYDIG will serve as the fund’s sponsor firm.
Investment Objective Of NYDIG’s Trust Fund
A part of the Form S-1 filing further stated the investment objective of NYDIG’s trust fund saying that it will aim at reflecting the major cryptocurrency’s price value’s performance. The company clearly mentioned that it would not be reflecting any index or benchmark’s performance.
The new filing made by NYDIG for the BTC exchange-traded fund follows the firm’s previous filing with the SEC that it made back in the month of Dec 2020. In that filing, it stated that it had gathered an amount of $100 million for its Digital Assets Fund II.