NYDIG files for US-based Bitcoin ETF, with Morgan Stanley on board

New York Digital Investment Group, or NYDIG, has submitted paperwork with the United States Securities and Exchange Commission to launch a new Bitcoin (BTC) exchange-traded fund. 

NYDIG filed a Form S-1 registration statement for a Bitcoin ETF with the SEC on Tuesday. The submission lists NYDIG Trust Company LLC as the fund’s Bitcoin custodian and Morgan Stanley as an authorized participant.

As an authorized participant, Morgan Stanley is expected to sell shares to the public at prices that reflect the fund’s assets, supply and demand, and underlying market conditions. The shares will trade on the NYSE Arca exchange under a yet-to-be-determined ticker symbol.

According to the prospectus summary:

“The Trust’s investment objective is to reflect the performance of the price of bitcoin less the expenses of the Trust’s operations. The Trust will not seek to reflect the performance of any benchmark or index.”

It continues:

“In seeking to achieve its investment objective, the Trust will hold bitcoin.”

NYDIG has been highly active in the crypto space, as it seeks to provide more institutional exposure to digital assets like Bitcoin. In November and December 2020, the company raised $150 million through two separate cryptocurrency investment funds. NYDIG was granted a BitLicense by the New York State Department of Financial Services in 2018.

Stone Ridge, NYDIG’s parent company, is one of the largest institutional holders of Bitcoin.

The quest for a Bitcoin ETF has been elusive, at least in the United States, where several fund issuers have tried unsuccessfully to get regulatory approval.

Canada recently approved the first publicly traded Bitcoin ETF in North America, allowing institutional investors to access BTC investments directly without derivatives.