Galaxy Digital joined forces with the largest asset management firm in Latin America to launch a Bitcoin ETF in Brazil. The move comes as a part of Galaxy’s plan to create a complete suite of physically backed crypto ETFs in Brazil.
Crypto-friendly Brazil Welcomes Another Crypto ETF
Blockchain financial firm Galaxy Digital partnered with Itaú Asset Management, the biggest asset manager in Latin America, to launch a Bitcoin exchange-traded fund (ETF) in Brazil. The fund, named IT Now Bloomberg Galaxy Bitcoin ETF (BITI11), will debut on the B3 stock exchange Thursday.
The launch represents the first step of Galaxy’s plan to develop a comprehensive set of physically backed crypto ETFs in Brazil. The firm’s global head of asset management, Steve Kurz, said Galaxy is also planning to launch an ether ETF in Brazil in the future. The firm is also on the lookout for other business opportunities across Europe and Asia, Kurz added.
Galaxy is monitoring opportunities in European and Asian markets as well, he added.
“As the crypto market develops institutionally, there is a big role for blue-chip firms like Galaxy to act as a partner to large institutions that have deep client bases yet lack the in-house expertise that’s necessary to build and create high-quality crypto products.”
– Steve Kurz, global head of asset management at Galaxy Digital.
Headquartered in Brazil, Itaú Asset Management is one of the longest-standing private asset management firms in the region, managing around $165 billion in assets. The 65-year-old firm is a daughter company of Itaú Unibanco, which serves over 65 million customers across the globe.
Kurz also emphasized the importance of Galaxy’s move into brazil, which he described as “the hotbed of crypto adoption.” In October, the world’s largest crypto exchange Binance opened two new offices in Brazil’s two major cities – Sao Paulo and Rio de Janeiro.
Galaxy Digital Reports $76.8M in Exposure to the Fallen FTX
The announcement of Galaxy’s new ETF comes just a day after the firm’s stock took a steep fall on the reports of its exposure to FTT, the native token of the collapsed FTX exchange. More specifically, Galaxy reported $76.8 million FTX exposure, of which $47.5 million is in the process of withdrawal.
But Galaxy is just one of the investors that suffered losses from the FTX debacle, which is likely one of the worst-ever events for the crypto industry. Earlier today, venture capital firm Sequoia Capital said it will mark down its $210 million investment in FTX due to potential bankruptcy.
On Wednesday, Binance scrapped its plan to bail out FTX, significantly increasing the likelihood of bankruptcy. Binance signed a non-binding agreement to buy FTX in a rescue deal, but the company backed out shortly after that, citing “issues [that] are beyond our control or ability to help.”
This article originally appeared on The Tokenist
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