New york Digital Investment Group (NYDIG), a financial services company specializing in cryptocurrency, has submitted a document to the Securities and Exchange Commission (SEC) to launch a new bitcoin (BTC) exchange-traded fund (ETF).
On Tuesday, NYDIG submitted an S-1 registration statement of bitcoin ETF to SEC. The submitted documents listed NYDIG Trust Company LLC as the bitcoin custodian company of the fund, and Morgan Stanley as the authorized participant.
As an authorized participant, Morgan Stanley is expected to sell shares to the public at a price that reflects the assets, supply and demand of the fund and the basic market conditions. The company's stock will be traded in Arca of new york Stock Exchange, and its stock code has not yet been determined.
Summary of proposal submitted according to NYDIG:
"The investment goal of the trust is to reflect the performance of bitcoin price while reducing the operating expenses of the trust. The trust will not seek to reflect the performance of any benchmark or index. "
The plan goes on to write:
"In order to achieve the investment goal, the trust will hold bitcoin."
NYDIG has been very active in the field of encryption because it tries to provide more institutions with exposure to digital assets such as Bitcoin. In November and December 2020, the company raised $150 million through two independent cryptocurrency investment funds. In 2018, NYDIG obtained the BitLicense license issued by the financial services bureau of new York state.
Stone Ridge, the parent company of NYDIG, is one of the largest institutional holders of Bitcoin.
The pursuit of bitcoin ETFs has always been elusive, at least in the United States. In the United States, several fund issuers tried to get approval from the regulatory authorities, but none of them succeeded.
Canada recently approved the first publicly traded Bitcoin ETF in North America, allowing institutional investors to directly invest in Bitcoin instead of derivatives.