Galaxy Digital Files with SEC to Launch Bitcoin Futures ETF Despite Q2 Losses

Galaxy Digital has filed with the U.S. Securities and Exchange Commission (SEC) to launch a Bitcoin futures ETF, hours before it reported losses last quarter.

Galaxy Digital wants to launch a Bitcoin (BTC) futures ETF

Galaxy Digital has filed with the US Securities and Exchange Commission (SEC) to list a Bitcoin futures ETF. The digital asset management company wants to launch an ETF that does not directly track the price of the leading cryptocurrency.

The Galaxy Bitcoin Strategy ETF It is expected to provide investors with exposure to Bitcoin futures and other Bitcoin exchange-traded funds instead of the direct spot price of Bitcoin. Galaxy Digital said the fund will invest in Bitcoin futures and other Bitcoin ETFs launched in countries such as Canada and Brazil.

The filing comes barely two weeks after SEC Chairman Gary Gensler said the regulator might be willing to approve an ETF that doesn't directly track the spot price of cryptocurrencies. Since then, five companies have filed to launch Bitcoin futures ETFs. The Bitcoin futures ETFs are expected to receive approval from the SEC as they comply with the regulator’s requirements.

The SEC has rejected several cryptocurrency ETFs in the past. The regulator believes that more regulation is needed in the crypto space to ensure investor protection before approving ETFs that track the spot prices of cryptos.

Galaxy Digital loses $175 million in the second quarter

A few hours after filing a Bitcoin futures ETF, Galaxy Digital reported its second-quarter earnings, and the company did not perform well. CEO Mike Novogratz revealed that the digital asset manager recorded a loss of $175.8 million in the previous quarter.

The losses could be attributed to a decline in the prices of Bitcoin and other leading cryptocurrencies. This comes despite Galaxy Digital reporting an increase in trading activity and assets under management this quarter.

Bitcoin fell from its all-time high of over $64,000 to below $30,000 in the second quarter. However, the market is slowly recovering and Bitcoin has been trading above the $40,000 mark for the past few weeks.

Currently, Bitcoin (BTC) is down 3% and is trading above $45,400 on various cryptocurrency exchanges. The market recovery could continue in the next few months and boost Galaxy Digital's performance in the current quarter.