Intense Competition in Bitcoin ETFs! GALAXY Submits Application, BNY Mellon to Serve as Custodian for SkyBridge Capital

Several institutions have applied for a Bitcoin ETF this year, with the latest being cryptocurrency investment firm Galaxy Digital knocking on the door of the U.S. Securities and Exchange Commission (SEC). Previously, Tiger Capital, which also submitted an ETF application, has chosen "Bank of New York Mellon" as its future Bitcoin custodian.

GALAXY BITCOIN ETF

According to the S-1 form submitted by Galaxy Digital on Monday, 4/12, the Bitcoin ETF will be traded on NYSE Arca, a subsidiary of the New York Stock Exchange Group. The Bitcoin custodian and agent have not been determined yet, and the pricing mechanism will be based on data from Bloomberg Index Services.

In fact, Canada has already seen several Bitcoin ETFs launched this year. Galaxy Digital, for instance, launched the "CI Galaxy Bitcoin ETF" in collaboration with asset management firm CI Global on March 9th on the Toronto Stock Exchange and began trading on the same day.

Furthermore, despite the continued regulatory barriers from the SEC, traditional financial institutions are still showing ambitions to get involved. NYSE Arca, for example, submitted a Bitcoin ETF application in 2019. "BNY Mellon" announced in February that it would partner with the exchange Bakkt to be its cryptocurrency asset custodian.

BNY Mellon Actively Expands Custody Services

In addition to partnering with Bakkt, "Skybridge Capital," which submitted a Bitcoin ETF application in March, has also selected BNY Mellon as its service custodian. Despite the challenges Bitcoin ETFs face, the numerous applications seem to indicate a significant demand from investors. Institutions such as Fidelity, Goldman Sachs, VanEck, NYDIG, Skybridge Capital, Bitwise, and the world's largest cryptocurrency trust fund Grayscale have all shown interest. Grayscale announced at the beginning of this month that they will "100% convert GBTC into a Bitcoin ETF."