Bitcoin-oriented crypto firm NYDIG has applied for a Bitcoin ETF to the US Securities and Exchange Commission (SEC)
News that the New York Digital Investment Group registered for a Bitcoin ETF emerged yesterday. This comes a week after its founder Ross Stevens discussed with MicroStrategy’s Michael Saylor on the possible entry of a lot of institutional funds into the Bitcoin market. The firm, a Bitcoin-centric subsidiary of Stone Ridge Asset Management, joins Valkyrie Digital Assets and Vaneck that have already submitted their bitcoin-based ETF filings.
NYDIG’s Bitcoin ETF registration is a Form S-1 statement that seeks to dispense common shares trade on New York Stock Exchange Arca.
A section of the filing read, “The NYDIG Bitcoin Trust’s investment objective is to reflect the performance of the price of bitcoin less the expenses of the Trust’s operations. The Trust will not seek to reflect the performance of any benchmark or index […] The Trust will value its assets daily in accordance with GAAPs, which generally value bitcoin by reference to orderly transactions in the principal active market for bitcoin.”
Jeff Kilburg, founder and CEO of KKM Financial, believes nearly a dozen companies are looking to get a Bitcoin ETF in the country. Last week on CNBC’s ETF Edge, Kilburg, who is also a partner at Valkyrie, explained that 2021 was likely the year when Bitcoin ETFs saw the light of the day.
The registration filing revealed that the crypto service provider would collaborate with the multinational investment bank, Morgan Stanley. The giant financial services company will act in the capacity of an initially authorised participant. The Delaware Trust Company will be the trustee of the NYDIG Bitcoin ETF.
The filing also features a warning page highlighting the risks associated with a Bitcoin ETF.
“Investment in the Trust involves significant risks and may not be suitable for shareholders that are not in a position to accept risks related to bitcoin. The shares are speculative securities.”
The SEC is yet to approve a Bitcoin ETF with the commission’s major concerns being Bitcoin’s volatility, the lack of a well-established custody and monitoring tools. The cited issues are a hindrance as they make exchanges apt to price manipulation.
