Galaxy brings Bitcoin ETF to Brazil with Tradfi Giant
Galaxy brings Bitcoin ETF to Brazil with Tradfi Giant
Galaxy Digital has launched a Bitcoin ETF in Brazil through a partnership with Latin America's greatest private asset manager, which is the latest example of the collision of crypto and tradfi.
The crypto unit has teamed up with the long-standing hedge fund ITAú Asset Management in order to build a complete range of physically secured crypto ETFs in Brazil. The IT Now Bloomberg Galaxy Bitcoin ETF (Biti11), which was to be traded on Thursday on the B3 Stock Exchange, is the first.
Steve Kurz, Global Head of Asset Management at Galaxy, told Blockworks that Galaxy would probably try to bring an ETF with ether focus and more diversified strategies to Brazil through the partnership.
Galaxy also monitors the possibilities in the European and Asian markets, he added.
"While the cryptom market is developing institutionally, it plays a major role for Blue-Chip companies like Galaxy to act as a partner for large institutions that have a large customer basis, which, however, lack the internal specialist knowledge that is required for building and creating high-quality cryptos," said.
The Brazilian company ITAú Asset Management, founded in 1957, manages a fortune of around $ 165 billion. The parent company ITAú Unibanco works in 18 countries and has more than 65 million customers.
"This partnership combines the solidity and credibility that we have built up at ITAú asset in more than 60 years with the strength and expertise of Galaxy as one of the most experienced actors in the global digital-asset area," explains Renato EID TUCCI, head of ITAú asset management of the beta strategy and the ESG integration, according to an explanation.
Kurz said it was important for Galaxy to penetrate a country that he called "a breeding site of the crypto adoption". While several spot bitcoin ETFs are traded on Canadian stock exchanges, the United States has to approve a spot bitcoin ETF despite dozens of failed applications.
That said the Digitalbank Nubank based in Brazil in September his"> Crypto platform had 1.8 million users . QR Asset Management launched the first Bitcoin ETF Latin America in Brazil in June 2021, and others, such as Hashdex, have also played crypto-related funds in the country.
The announcement takes place after Galaxy reported a net loss of $ 68 million in the third quarter on Wednesday, an improvement compared to the loss of $ 112 million and $ 555 million in the first or second quarter. The crypto markets also fluctuate under the imposion of FTX, with Bitcoin lost almost 24 % this week and is now moving at $ 16,300-the lowest level since December 2020.
The Galaxy wealth management branch managed around $ 2 billion in assets in passive, active and venture strategies on October 31. Galaxy's share in Toronto has lost 36 % last week and 83 % in the previous year.
The recent Galaxy partnership follows the cooperation with the fund giant Investco in September 2021.
The company also entered into a partnership with the company CI Global Asset Management in Canada and introduced blockchain and meta-verse ETFs with the company at the Toronto Stock Exchange in May.
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The contribution Galaxy brings Bitcoin ETF with Tradfi Giant to Brazil is not a financial advice.