Galaxy Digital, the crypto investment manager founded by bitcoin bull Mike Novogratz, has revealed plans to launch a bitcoin fund in Canada.

In a statement Galaxy Digital, published Nov. 16, said it has partnered with major Canadian fund manager CI Global Asset Management for the launch.

The fund is called the “CI Galaxy Bitcoin Fund” and will be open to the general public. Galaxy Digital, which focuses primarily on corporate investors, has since received approval from securities regulators for its preliminary prospectus for an initial public offering (IPO), it added.

According to the announcement, the fund is a “closed-end investment fund” that will invest directly bitcoin (BTC) and will be priced based on the Bloomberg Galaxy Bitcoin Index. The index is designed to measure the performance of a single bitcoin that is traded in US dollars.

The IPO will consist of Class A and Class F units at a price of $ 10 each. Galaxy Digital, in turn, allocates the buyer the equivalent in bitcoin from its own holdings. It said the units are offered “to the best of our ability in each of Canada’s provinces and territories.”

Galaxy Digital will become the sub-advisor to the CI Galaxy Bitcoin Fund, responsible for conducting all bitcoin trading activities. CI Global will act as the fund manager.

Such as reported a few days ago, Galaxy Digital acquired two crypto companies – Drawbridge Lending and Blue Fire Capital – in anticipation of a “bigger wave of institutional demand” for bitcoin.

In the third quarter of 2020, the company reported a 75% increase in volumes traded, year over year, to $ 1.4 billion. Assets under management were $ 407 million, including $ 82 million in liabilities BTC and index funds. Third quarter net profit was $ 44.3 million, compared to a loss of $ 68.2 million a year ago, largely due to a sharp increase in the price of BTC.

What do you think of Galaxy Digital’s planned bitcoin fund in Canada? Let us know in the comments below.

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