The US SEC continues to receive applications for a BTC ETF despite its opposing stance. The latest application is from digital asset management firm, Galaxy Digital, headed by Bitcoin and Ethereum enthusiast, Mike Novogratz. However, according to reports, the asset manager has applied for a Futures-based BTC ETF under the 1940 legislation.
Galaxy Digital’s latest ETF was filed under the said legislation in a bid to water down any opposition that may arise from the US SEC’s Chairman, Gary Gensler. Gary Gensler had once touted the legislation as ‘safe haven’ for investors who are willing to invest in BTC ETFs. The legislation is said to be capable of regulating Trusts and mutual funds.
Latest BTC ETF Application is Galaxy Digital’s Fifth
Contained in the 1940 legislation are provisions citing requirements for applying for a BTC ETF. Accordingly, the US SEC and its Chairman, Gary Gensler uphold these requirements. Thus, the asset manager is coming under the cover of these requirements as it files its fifth BTC ETF. But this time around, it is a Futures-based exchange-traded fund (ETF)
Despite receiving numerous applications, the US SEC has remained reluctant to assent to a BTC ETF. The asset manager’s latest application may be the catalyst for the first BTC ETF in the US since it is not an ordinary application. Citing the risks- especially volatility- inherent in cryptocurrencies, the US SEC has turned a blind eye to the tons of ETF applications. Already, the 1940 legislation protects investors, so the commission will have no choice than to look into Grayscale’s application.
BTC ETF Unlikely in 2021, Says Greg King
In some quarters, it is believed that a BTC ETF is unlikely for the US in 2021 due to the body language of regulators. CEO of Osprey Funds, Greg King is one of those who is of such opinion. In fact, he added that the US SEC already has a lot on its plate to give consideration to cryptocurrency ETFs. As much as his argument holds water, the US SEC might take exception to Galaxy Digital’s compelling application.
Back in April, it filed its first ETF request under the 1933 Securities legislation. The asset manager already operates an ETF in Canada under the name CI Galaxy BTC ETF, amid other investment products. Meanwhile, similar ETF applications were made by investment firms like VanEch, Invesco, which are still pending approval from the US SEC.
Mike Novogratz is a die-hard BTC enthusiast and had once advised every investor to commit 5% of their portfolios to the flagship cryptocurrency. Novogratz also has an interest in the largest altcoin, Ethereum. The BTC enthusiast recently had a verbal spar with Cardano’s founder, Charles Hoskinson in light of the former’s comments on ADA, the native token of the Cardano blockchain.