Galaxy digital files for US Bitcoin futures ETF after reporting a loss of $ 175 million in the second quarter
What happened: Mike Novogratz, head of a crypto-focused investment firm Galaxy Digital Holdings Ltd (OTC: BRPHF), remains bullish on digital currencies, despite losing $ 175 million in the second quarter of this year.
Galaxy Digital shares fell 12% on Tuesday after the company reported a loss of $ 175.8 million, largely due to the decline in overall digital asset prices.
“During the quarter, our results were impacted by a 34% decrease in total digital asset prices and a 41% decrease in price Bitcoin (CRYPTO: BTC), based on the end of the first quarter, ”said Galaxy Digital.
Why it matters: During the same period last year, Galaxy Digital reported net income of $ 35.3 million.
However, the company found that some of the effects of the market-related loss were partially offset by a combination of increased trading activity with counterparties, gains on derivatives from hedging transactions, and growth in its operations.
“Look, we lost money last quarter. We lost about 10%, just over 10% of our equity, which is what Bitcoin is down 41%. I do not mind [sic]“, Said an uninvolved Novogratz in a telephone conversation.
“Year-to-date VC investments in crypto and blockchain companies are $ 9 billion, with nearly $ 6 billion invested in the second quarter alone. In comparison, the average in 2020 is closer to 1 billion investments per quarter, ”he added.
What else: To further underscore its unchanged optimistic outlook for Bitcoin, Novogratz’s firm has also filed for a US Bitcoin futures ETF, according to a filing filed by the Securities and Exchange Commission (SEC) on Tuesday.
The future ETF will not invest in Bitcoin directly, but instead will invest in cash-settled Bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME).
“Investors looking for direct exposure to the Bitcoin price should consider an investment other than the fund,” the filing states.
Price action: At press time, Bitcoin was trading at $ 45,189, down 2.13% in the past 24 hours.
Read Next: Cardano (ADA) investment products top weekly crypto inflows at $ 1.3 million, while Bitcoin and Ethereum lose $ 23 million