CI Global Asset Management (“CI GAM”) announced that the CI Galaxy Bitcoin ETF (“BTCX” or the “ETF”) begins trading today on the Toronto Stock Exchange (“TSX”) under the tickers BTCX.B and BTCX.U. BTCX’s management fee of just 0.40% represents the lowest management fee of any bitcoin ETF in the world today.
“As market validation of cryptocurrencies continues to accelerate, we are offering investors a secure and lower-cost way to participate in the bitcoin market,” said Kurt MacAlpine, Chief Executive Officer of CI Financial Corp., the parent company of CI GAM. “We believe that the CI Galaxy Bitcoin ETF will be investors’ preferred means of holding and trading bitcoin because it offers the lowest management fee of any bitcoin fund on the market and is backed by the diverse and extensive management capabilities of both CI GAM, one of Canada’s leading investment managers, and Galaxy Digital, a world leader in digital asset fund management.”
BTCX is designed to provide investors with a convenient way to gain exposure to bitcoin through an institutional-quality fund platform. BTCX invests directly in bitcoin with its holdings priced using the Bloomberg Galaxy Bitcoin Index (the “BTC”), which is designed to measure the performance of a single bitcoin traded in U.S. dollars. The BTC index is owned and administered by Bloomberg Index Services Ltd.
BTCX.B will trade in Canadian dollars (unhedged) and BCTX.U will trade in U.S. dollars.
CI GAM is the manager of the ETF and Galaxy Digital Capital Management LP (“GDAM”) serves as the bitcoin sub-advisor for the ETF. As sub-advisor, GDAM executes bitcoin trading on behalf of the ETF. GDAM is the Asset Management arm of Galaxy Digital, a diversified financial services firm dedicated to the digital asset and blockchain technology sector. The GDAM team has deep institutional experience managing third-party capital across traditional and alternative asset classes, strong relationships with institutional service providers and counterparties, and exceptional connectivity throughout the blockchain and digital assets ecosystem.
“Bitcoin adoption has hit a tipping point and investors don’t want to sit on the sidelines,” said Mike Novogratz, Chairman and Chief Executive Officer of Galaxy Digital. “The CI Galaxy Bitcoin ETF offers investors the most affordable way to gain exposure to bitcoin of any exchange-traded product on the market. As we continue our work to institutionalize the digital assets sector, CI and Galaxy are aligned in our commitment to drive innovation in product development and portfolio solutions for investors seeking exposure to this increasingly in-demand asset class.”
CI GAM is building on its leadership in digital currencies, having launched the CI Galaxy Bitcoin Fund (TSX: BTCG) in December 2020, which it intends to merge into the ETF, and has obtained a receipt for the preliminary prospectus of CI Galaxy Ethereum ETF (the “Ether ETF”), which, once approved, is expected to be the first ETF in the world to invest directly in Ether, the cryptocurrency built on the Ethereum blockchain. CI GAM has also filed and obtained receipts for the preliminary prospectuses of CI Bitcoin and CI Ether Funds, which are mutual fund versions with the same investment objectives as BTCX and the Ether ETF, respectively.
Benefits of the CI Galaxy Bitcoin ETF include:
- Lowest management fee of 0.40%
- A streamlined means of accessing bitcoin
- Storage of bitcoin in a segregated cold storage system, protected in accordance with industry-leading protocol
- Leveraging the experience of GDAM’s veteran portfolio management team to execute the purchase and sale of bitcoin
- Ability to conveniently trade units correspondent to real-time changes in value
- Can be held in registered plans like TFSA and RRSP.
More information is available at ci.com/bitcoin.
About Galaxy Digital
Galaxy Digital Capital Management LP is an affiliate of Galaxy Digital Holdings Ltd. (TSX: GLXY) (“Galaxy Digital”). Galaxy Digital is a diversified financial services and investment management company in the digital asset, cryptocurrency and blockchain technology sector, and currently operates four distinct business lines, which include: Trading, Asset Management, Principal Investments and Investment Banking. Galaxy Digital’s CEO and Founder is Michael Novogratz. Galaxy Digital is headquartered in New York City, with offices in Chicago, San Francisco, London, Tokyo, Hong Kong, the Cayman Islands (registered office) and New Jersey. Additional information about Galaxy Digital’s businesses and products is available on www.galaxydigital.io.
About CI Global Asset Management
CI Global Asset Management is one of Canada’s largest investment management companies. It offers a wide range of investment products and services and is on the Web at www.ci.com. CI GAM is a subsidiary of CI Financial Corp. (TSX: CIX, NYSE: CIXX), an independent company offering global asset management and wealth management advisory services with approximately C$231.8 billion in total assets as at January 31, 2021.
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