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NEW YORK, Dec. 16, 2020 /CNW/ - Galaxy Digital Holdings
Ltd. (TSX: GLXY) announced that its
affiliate, Galaxy Digital Capital Management
L.P. ("Galaxy Digital") will serve as the sub-advisor to the
CI Galaxy Bitcoin Fund ("BTCG.U" and "BTCG.UN" or the "Fund"), a
closed-end investment fund listed on the Toronto Stock Exchange and
managed by CI Global Asset Management ("CI GAM"), one of
Canada's largest investment
management companies. The Fund's bitcoin will be priced based on,
and the Fund's Net Asset Value will be calculated using, the
Bloomberg Galaxy Bitcoin Index ("BTC"), which measures the
performance of a single bitcoin traded in U.S. Dollars.
The Fund's launch comes as demand for exposure to digital assets
among institutional investors continues to increase. According to
research conducted by Fidelity Digital Assets and Greenwich
Associates, nearly 80% of institutional investors find something
appealing about digital assets, and more than 6 in 10 institutions
believe that digital assets have a place in their investment
portfolios.
"We are pleased to partner with CI Global Asset Management, an
established and highly regarded Canadian investment firm, to help
bring viable bitcoin exposure to a broader subset of investors,"
said Steve Kurz, Partner and Head of
Asset Management at Galaxy Digital. "The CI Galaxy Bitcoin Fund
provides investors with a simplified, more traditional means of
access to bitcoin."
Investors continue to learn about Bitcoin and its outperformance
over the S&P 500 and gold over one-, five- and ten-year time
frames. Year-to-date, bitcoin's price has risen by more than 150%.
Despite its historical volatility, over the long–term, bitcoin has
exhibited a low, and even negative, correlation to most major
equity and fixed income asset classes, currencies, and commodities,
including the Bloomberg Barclays Global Aggregate Bond Index, the
FTSE Canada Universe Bond Index, the MSCI All Country World Index,
U.S. Dollar, Euro, Japanese Yen, gold and WTI oil.
"We believe Bitcoin has demonstrated its resiliency throughout
this recent period of economic volatility by exhibiting low
correlations with most major global asset classes," said
Mike Novogratz, Founder and CEO of
Galaxy Digital. "This innovative institutional-quality fund
platform will help meet the growing demand we are seeing from
larger institutional allocators."
For more information on CI Galaxy Bitcoin Fund, including its
prospectus, please visit www.sedar.com.
Disclaimers:
The TSX has not approved or disapproved of the information
contained herein.
No offering is being made by this material. This communication
is provided as a general source of information and should not be
considered personal, legal, accounting, tax or investment advice,
or construed as an endorsement or recommendation of any entity or
security discussed. Individuals should seek the advice of
professionals, as appropriate, regarding any particular investment.
Investors should consult their professional advisors prior to
implementing any changes to their investment strategies.
BLOOMBERG is a trademark or service mark of Bloomberg Finance
L.P. GALAXY is a trademark of GDCM. Bloomberg Finance L.P. and its
affiliates (collectively, Bloomberg) are not affiliated with GDCM,
the Fund and their respective affiliates (collectively, Galaxy).
Bloomberg's association with Galaxy is to act as the administrator
and calculation agent of the BTC (collectively, the "Index"), which
is the property of Bloomberg. Neither Bloomberg nor Galaxy
guarantee the timeliness, accurateness, or completeness of any data
or information relating to the Index or results to be obtained.
Neither Bloomberg nor Galaxy make any warranty, express or implied,
as to the Index, any data or values relating thereto or any
financial product or instrument linked to, using as a component
thereof or based on the Index (Products) or results to be obtained
therefrom, and expressly disclaims all warranties of
merchantability and fitness for a particular purpose with respect
thereto. To the maximum extent allowed by law, Bloomberg, its
licensees, Galaxy, and their respective employees, contractors,
agents, suppliers, and vendors shall have no liability or
responsibility whatsoever for any injury or damages—whether direct,
indirect, consequential, incidental, punitive, or otherwise—arising
in connection with the Index, any data or values relating thereto
or any Products—whether arising from their negligence or
otherwise.
About Galaxy Digital
Galaxy Digital Capital Management L.P. is an affiliate of Galaxy
Digital Holdings Ltd. (TSX: GLXY) ("Galaxy Digital"). Galaxy
Digital is a diversified financial services and investment
management company in the digital asset, cryptocurrency and
blockchain technology sector, and currently operates four distinct
business lines, which include: Trading, Asset Management, Principal
Investments and Investment Banking. Galaxy Digital's CEO and
Founder is Michael Novogratz. The Company is headquartered in
New York City, with offices in
Chicago, San Francisco, London, Tokyo, Hong
Kong, the Cayman Islands
(registered office) and New
Jersey. Additional information about the Company's
businesses and products is available on www.galaxydigital.io.
SOURCE Galaxy Digital Holdings Ltd.