Key Takeaways
- • Galaxy Digital, founded by former Goldman Sachs hedge fund manager Mike Novogratz, launched the CI Galaxy Bitcoin Fund in partnership with Canada-based CI Global Asset Management as a closed-end public investment vehicle offering institutional-quality bitcoin exposure.
- • The CI Galaxy Bitcoin Fund will invest directly in bitcoin, priced using the Bloomberg Galaxy Bitcoin Index, with Class A and Class F shares available at $10 each; CI Global Asset Management serves as fund manager while Galaxy Digital acts as sub-advisor and executes all bitcoin trading.
- • Galaxy Digital achieved net income of $44.3 million in Q3 2020 (compared to a $68.2 million loss in Q3 2019), with the firm attributing the improvement to rallying bitcoin markets and recent acquisitions of two digital asset firms.
- • The fund launch received preliminary prospectus approval from Canadian securities regulators for an initial public offering, expanding Galaxy Digital's existing suite of cryptocurrency-focused funds including the Galaxy Bitcoin Fund and Galaxy Institutional Bitcoin Fund.
- • Mike Novogratz publicly stated expectations for bitcoin to reach $65,000, citing abundant new institutional buyers and constrained supply dynamics.
Summary
Galaxy Digital, the cryptocurrency merchant bank owned by Wall Street veteran Mike Novogratz, announced the launch of the CI Galaxy Bitcoin Fund in Canada on November 17, 2020, in collaboration with Toronto-based investment firm CI Global Asset Management. The fund received preliminary prospectus approval from Canadian securities regulators for a public offering, establishing a closed-end investment vehicle designed to provide institutional investors with direct bitcoin exposure through a regulated platform.
The CI Galaxy Bitcoin Fund will operate as a closed-end fund investing directly in bitcoin, with share pricing anchored to the Bloomberg Galaxy Bitcoin Index, which measures single bitcoin performance denominated in U.S. dollars. The index is owned and administered by Bloomberg Index Services Ltd. CI Global Asset Management assumes the role of fund manager, while Galaxy Digital serves as sub-advisor and assumes responsibility for executing all bitcoin trading operations. Investors can purchase Class A and Class F shares priced at $10 each, providing both retail and institutional access points to bitcoin exposure through a professionally managed structure.
This Canadian fund launch represents an expansion of Galaxy Digital's existing cryptocurrency fund offerings, which already include the Galaxy Bitcoin Fund and Galaxy Institutional Bitcoin Fund, alongside other digital asset products such as EOS-based funds. The firm has positioned itself as an institutional-grade platform for cryptocurrency investment, distinguishing itself in a crowded market through regulatory compliance and professional asset management infrastructure.
Galaxy Digital's financial performance strengthened considerably in the third quarter of 2020, with the firm reporting net income of $44.3 million, a dramatic reversal from the $68.2 million loss posted in Q3 2019. The firm attributed this turnaround directly to the rallying bitcoin market environment. During the same period, Galaxy Digital acquired two digital asset firms, signaling strategic expansion aimed at capturing institutional investor demand. Novogratz, the firm's chairman and CEO, publicly articulated bullish bitcoin price expectations during this announcement window, projecting bitcoin could reach $65,000 based on what he characterized as "tons of new buyers" entering the market combined with constrained bitcoin supply.
The CI Galaxy Bitcoin Fund will operate as a closed-end fund investing directly in bitcoin, with share pricing anchored to the Bloomberg Galaxy Bitcoin Index, which measures single bitcoin performance denominated in U.S. dollars. The index is owned and administered by Bloomberg Index Services Ltd. CI Global Asset Management assumes the role of fund manager, while Galaxy Digital serves as sub-advisor and assumes responsibility for executing all bitcoin trading operations. Investors can purchase Class A and Class F shares priced at $10 each, providing both retail and institutional access points to bitcoin exposure through a professionally managed structure.
This Canadian fund launch represents an expansion of Galaxy Digital's existing cryptocurrency fund offerings, which already include the Galaxy Bitcoin Fund and Galaxy Institutional Bitcoin Fund, alongside other digital asset products such as EOS-based funds. The firm has positioned itself as an institutional-grade platform for cryptocurrency investment, distinguishing itself in a crowded market through regulatory compliance and professional asset management infrastructure.
Galaxy Digital's financial performance strengthened considerably in the third quarter of 2020, with the firm reporting net income of $44.3 million, a dramatic reversal from the $68.2 million loss posted in Q3 2019. The firm attributed this turnaround directly to the rallying bitcoin market environment. During the same period, Galaxy Digital acquired two digital asset firms, signaling strategic expansion aimed at capturing institutional investor demand. Novogratz, the firm's chairman and CEO, publicly articulated bullish bitcoin price expectations during this announcement window, projecting bitcoin could reach $65,000 based on what he characterized as "tons of new buyers" entering the market combined with constrained bitcoin supply.
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