Is the institutionalization of Bitcoin (BTC) an essential step in laying the structural foundations for a rise in the price of BTC over the next decade?
Galaxy Digital wants to make Bitcoin accessible to serious investors in Canada by working with a Canadian investment firm to create a public BTC fund.
Buy Bitcoin within standards in Canada
In a November 16 press release, the company Galaxy digital founded by Mike Novogratz and the Canadian investment company CI Global Asset Management, announce their collaboration for the launch of a public fund BTC at Canada.
The CI Galaxy Bitcoin Fund is a closed-end investment fund that offers unitholders an investment in Bitcoin.
The Galaxy Institutional Bitcoin Fund is only open to US companies. The Canadian fund is open to investment by the general public.
The CI Galaxy Bitcoin Fund will invest directly in Bitcoin, the price of the latter being determined using the Bloomberg Galaxy Bitcoin Index.
Unlike unregulated exchanges, this fund is positioned as a secure, regulated alternative that complies with current standards, for serious investors who wish to acquire Bitcoins.
TheIPO will consist of a sale of Class A and F units, each unit worth USD 10. With each share purchase, Galaxy digital will allocate to this purchase an amount equivalent to Bitcoin from its own assets.
As a closed-end investment fund, Galaxy digital may not issue later outside of this IPO, new units available for purchase to investors.
Another structural support for a BTC at $ 65,000
Mike Novogratz is known for his positions in favor of Bitcoin. He believes that the BTC should rise quickly to the level of 65,000 USD, thanks to a network effect caused in particular by the current bullish rally and, which would manifest itself in a massive entry of new buyers.
Bitcoin is approaching $ 20,000. It faced major resistance at $ 18,500 on November 18, 2020.
The rise of BTC is supported by institutional investors who have taken the turn BTC in particular to protect against dollar inflation.
A Bitcoin with a “more serious” image: even BTC would therefore need to take care of its branding to ensure its growth in the long term. Do these BTC funds align with the very philosophy of decentralized Bitcoin? What about the disintermediation of the markets with the possibility for everyone to buy BTC in P2P? A 5-digit Bitcoin, then a 6-digit Bitcoin and finally a 7-digit Bitcoin: aren’t we missing out on the essentials by trying to boost the price of BTC?
Litecoin, welcome in the Silver Age