Galaxy Digital plans to launch a new Bitcoin fund in Canada

Excellent profits in Q3 2020 for Galaxy Digital, mainly due to its Bitcoin trading activity

Galaxy Digital, a crypto bank founded by Mike Novogratz, intends to expand into Canada.

According to a statement on November 16, Galaxy Digital has partnered with Canada’s leading investment firm, CI Global Asset Management, to launch a Italian Formula public fund in the country.

The CI Galaxy Bitcoin Fund is a „closed-end investment fund“ that aims to provide unit holders with exposure to Bitcoin. The announcement states that the fund will invest directly in Bitcoin based on the prices of the Bloomberg Galaxy Bitcoin Index.

As part of the new initiative, CI GAM has filed and acquired a preliminary prospectus for the initial public offering (IPO) of CI Galaxy Bitcoin Fund. The fund will offer Class A and Class F units at a price of $10 each. While CI GAM will be responsible for asset management, Galaxy Digital will act as its subadvisor, which means that it will perform all BTC trading activities on behalf of the fund.

According to the announcement, you will be able to buy a stake in the fund „in each of Canada’s provinces and territories“.

In addition to the CI Galaxy Bitcoin Fund, Galaxy Digital has also launched other Bitcoin projects, such as the Galaxy Bitcoin Fund and the Galaxy Institutional Bitcoin Fund. The company also manages funds based on other cryptos, such as EOS.

The new initiative was launched shortly after Galaxy Digital saw a sharp increase in trading volumes in the third quarter of 2020. As reported by Cointelegraph, the company reported 75 percent year-on-year volume growth in Q3 2020, reaching $1.4 billion.
Zhao added that the DeFi industry has great potential for growth, noting that it remains popular even during the current sharp rise in Bitcoin (BTC). The CEO also pointed out that in 2017 Initial Coin Offering has been called a bubble, but several ICO-born projects, including Binance, are still going strong:

„Companies create new tokens, distribute them as a reward. It’s not a long story, but I think DeFi is here to stay. Even while Bitcoin’s popularity is growing significantly, DeFi continues to make people talk about it. We believe there is great potential for growth in DeFi.“

However, Zhao pointed out that some DeFi projects „may not last too long,“ although the industry offers a range of stimuli through yield farming and liquidity incentives.

In addition, Zhao said that cryptocurrencies like Bitcoin are the best form of money, calling it the „currency of freedom for millions of people around the world. According to the CEO’s forecasts, the crypto market has the potential to grow up to 100,000% as digital assets are likely to become more widespread than fiat currencies.

Author: admin