The fund raised $ 72 million on its first day on the market. They will use the Bloomberg Galaxy Bitcoin as an investment index.
The fixed capital investment fund, CI Galaxy Bitcoin Fund, began a new stage by listing on the Toronto Stock Exchange, raising USD 72 million in its Initial Public Offering.
The new bitcoin-based fund is formed by cryptocurrency bank Galaxy Digital together with Canadian investment company CI Global Asset Management (CI GAM).
According to a statement by CI GAM, on November 16, the fund obtained the seal of approval to operate in Canada, under the ticker symbol BTCG.U.
They also indicated that they will make investments in bitcoin using the Bloomberg Galaxy Bitcoin Index. An instrument whose mission is to measure the performance of bitcoin that goes through trades in US dollars.
Besides, the document that the fund gives head investors the chance to invest in bitcoin through an institutionally supported platform stands out. The bitcoin that currently belongs to the fund will lay under the protection of a cold storage system.
Both companies argue that the exit of the fund is partly motivated by the high demand for digital assets by institutional investors.
For his part, Mike Novogratz, founder and CEO of Galaxy Digital, said: “We believe that bitcoin has demonstrated its resilience throughout this recent period of economic volatility by exhibiting low correlations with most of the major global asset classes.”
Digital Galaxy with its eyes set on bitcoin funds
In 2019, Novogratz raised the possibility of creating two bitcoin funds to allow people easy access to the world’s most popular cryptocurrency.
As a consequence, in November of this year, Novogratz announced the launch of The Galaxy Institutional Bitcoin Fund LP, Galaxy Bitcoin Fund LP, and Galaxy Institutional Bitcoin Fund, Ltd with which it reached a peak of USD 100.1 million.
A few months ago, another relevant asset management and pension fund company such as Fidelity, also opened a bitcoin fund for institutional investors before the United States Securities and Exchange Commission.
Another example to consider is that of the bitcoin fund offered by Grayscale, which went from USD 1,866 million at the end of 2019 to USD 3,532 million at the end of the first half of 2020.
By Jenson Nuñez
