NYDIG Files For Bitcoin ETF

Stone Ridge’s NYDIG has filed for a bitcoin ETF with the Securities and Exchanges Commission (SEC).

They want the NYDIG Bitcoin ETF to be listed on the New York Stock Exchange (NYSE), the world’s biggest market with about $23 trillion in listed assets. They say:

“NYDIG Bitcoin ETF (the “Trust”) is an exchange-traded fund that issues common shares of beneficial interest (the “Shares”) that trade on NYSE Arca, Inc. (the “Exchange”) under a ticker symbol to be announced prior to commencement of trading.

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.

In seeking to achieve its investment objective, the Trust will hold bitcoin. The Trust will value its assets daily in accordance with Generally Accepted Accounting Principles (“GAAP”), which generally value bitcoin by reference to orderly transactions in the principal active market for bitcoin, as described under “Calculation of NAV” herein.

NYDIG Asset Management LLC (the “Sponsor”) is the sponsor of the Trust, Delaware Trust Company (the “Trustee”) is the trustee of the Trust and NYDIG Trust Company LLC (the “Bitcoin Custodian”) will hold all of the Trust’s bitcoin on the Trust’s behalf as custodian.

Shareholders who decide to buy or sell Shares of the Trust will place their trade orders through their brokers and may incur customary brokerage commissions and charges. Such trades may occur at a premium or discount relative to the net asset value (“NAV”) of the Shares of the Trust.

The Trust will process all creations and redemptions of Shares in transactions with financial firms that are authorized to do so (known as “Authorized Participants”)…

Authorized Participants are expected to sell Shares to the public at prices that reflect, among other factors, the value of the Trust’s assets, supply and demand for the Shares and market conditions at the time of a transaction.

The initial Authorized Participant is Morgan Stanley & Co. LLC.

Prior to this offering, there has been no public market for the Shares. The Shares are expected to be listed for trading, subject to notice of issuance, on the Exchange under a ticker symbol to be announced prior to commencement of trading…

The offering of the Trust’s Shares is registered with the Securities and Exchange Commission (the “SEC”) in accordance with the Securities Act of 1933, as amended (the “1933 Act”).”

SEC will presumably have to approve this with no bitcoin related stock, either directly or indirectly, listed on this prime exchange.

The decision will probably be taken by the new incoming chair, Gary Gensler, and effectively by Biden himself.

We may therefore be on the brink of a fairly historic moment as the world’s first digital assets inches towards listing on the world’s biggest stock exchange.

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