The Bitcoin-oriented crypto company NYDIG has applied for a Bitcoin ETF with the US Securities and Exchange Commission (SEC).
It was announced yesterday that the New York Digital Investment Group has registered for a Bitcoin ETF. This comes a week after its founder Ross Stevens spoke to MicroStrategy’s Michael Saylor about the possible entry of many institutional funds into the Bitcoin market. The company, a Bitcoin-focused subsidiary of Stone Ridge Asset Management, joins Valkyrie Digital Assets and Vaneck, who have already filed their Bitcoin-based ETF filings.
NYDIG’s Bitcoin ETF registration is a Form S-1 declaration that seeks to distribute trading in common stocks on the Arca New York Stock Exchange.
One section of the filing read: “The investment objective of NYDIG Bitcoin Trust is to reflect the performance of the Bitcoin price minus the cost of operating the trust. The Trust will not seek to reflect the performance of any benchmark or index […] The Trust values its assets daily according to GAAPs, which generally value Bitcoin through orderly transactions in the main active market for Bitcoin. “
Jeff Kilburg, Founder and CEO of KKM Financial, believes nearly a dozen companies are looking for a Bitcoin ETF in the country. Last week, Kilburg, who is also a partner at Valkyrie, stated at CNBC’s ETF Edge that 2021 was likely the year Bitcoin ETFs saw the light of day.
Registration revealed that the crypto service provider would work with multinational investment bank Morgan Stanley. The giant financial services company will act in the capacity of an originally authorized participant. The Delaware Trust Company will be the trustee of the NYDIG Bitcoin ETF.
The filing also includes a warning page highlighting the risks associated with a Bitcoin ETF.
“Investing in the Trust carries significant risks and may not be suitable for shareholders who are unable to accept risks associated with Bitcoin. The stocks are speculative securities. “
The SEC has yet to approve a Bitcoin ETF. The Commission’s main concerns are Bitcoin’s volatility, the lack of well-established custody and monitoring tools. The problems mentioned are an obstacle as they make the exchange suitable for price manipulation.