Bitcoin trading and custody services provider NYDIG has filed for a Bitcoin exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC).
Morgan Stanley will serve as the proposed authorized participant, as per the NYDIG’s S-1 filing published on Tuesday. Authorized Participants are expected to sell shares to the public at prices that reflect the value of the Trust’s assets, supply and demand for the shares, and market conditions at the time of a transaction reads the document.
If approved, it will trade on the NYSE Arca exchange.
The investment objective of the Trust is to “reflect the performance of the price of bitcoin less the expenses of the Trust’s operations,” but won’t seek to mirror the performance of any index, says the filing.
The subsidiaries – NYDIG Asset Management LLC is the sponsor of the trust, and NYDIG Trust Company LLC would be the custodian of the digital asset.
“Shareholders who decide to buy or sell Shares of the Trust will place their trade orders through their brokers and may incur customary brokerage commissions and charges. Such trades may occur at a premium or discount relative to the net asset value (“NAV”) of the Shares of the Trust.”
NYDIG is the latest in the line of firms filing for a Bitcoin ETF [Accelerate and VanEck], which many are expecting to be approved this year, while JPMorgan strategists believe a Bitcoin ETF approval would have negative implications for the price in the short-term by eroding Grayscale’s GBTC’s effective monopoly status and causing a cascade of GBTC outflows.
No Bitcoin ETF has been approved by the SEC to date.
Just last week, the first publicly traded Bitcoin ETF was approved in North America by Canada’s financial regulator, the Ontario Securities Commission (OSC).