Filing reflects CI’s emerging leadership in digital assets and aligns with CEO’s strategic priority to modernize its asset management platform
CI Global Asset Management ("CI GAM") announced today that it has filed and obtained a receipt for a preliminary prospectus for CI Galaxy Ethereum ETF ("ETHX" or the "ETF"). When launched, it is expected to be the first ETF in the world to invest directly in Ether, the cryptocurrency built on the Ethereum blockchain.
"Cryptocurrencies are transforming the financial world, and we are excited to launch the world’s first ETF investing directly in Ether, one of the most highly valued cryptocurrencies," said Kurt MacAlpine, Chief Executive Officer of CI Financial, the parent company of CI GAM.
"CI is quickly establishing a leadership position in this space, having launched CI Galaxy Bitcoin Fund and recently filing a preliminary prospectus for CI Galaxy Bitcoin ETF, in partnership with blockchain and cryptocurrency experts Galaxy Digital. With these funds, we are reducing the friction points that investors have traditionally faced in buying and holding cryptocurrencies. CI Galaxy Ethereum ETF is an important addition to that lineup as this emerging asset class gains increasing interest and validation."
CI Galaxy Ethereum ETF will trade on the TSX under the ETHX ticker and is designed to provide investors with a convenient way to gain exposure to Ether through an institutional-quality fund platform. ETHX will invest directly in Ether with its holdings priced using the Bloomberg Galaxy Ethereum Index ("ETH Index"), which is designed to measure the performance of a single Ether traded in U.S. dollars. The ETH Index is owned and administered by Bloomberg Index Services Ltd.
CI GAM will be the manager of the ETF and Galaxy Digital Capital Management LP ("Galaxy Digital") will act as the Ether sub-advisor for the ETF. As sub-advisor, Galaxy Digital will execute Ether trading on behalf of the ETF. Galaxy Digital is a diversified asset management firm dedicated to the digital asset and blockchain technology sector. The team has extensive experience spanning portfolio management, capital markets, mining, operations and blockchain technology.
"Ethereum is the leading candidate to be the base layer of Web 3.0, and Ether is a growth asset that provides investors exposure to the explosion of decentralized applications," said Mike Novogratz, Chairman and Chief Executive Officer of Galaxy Digital Holdings.
"We are thrilled to expand our advisory relationship with CI," said Steve Kurz, Partner and Head of Asset Management. "The CI Galaxy Ethereum ETF represents a global first, giving investors a simplified path to benefit from the potential growth of this important asset class."
CI GAM’s leadership in the cryptocurrency market is aligned with its goals of modernizing its asset management lineup to respond to evolving investor needs and includes CI Galaxy Bitcoin Fund (TSX: BTCG), which launched on the TSX in December 2020, and a preliminary prospectus for CI Galaxy Bitcoin ETF (TSX: BTCX).
A preliminary prospectus dated February 24, 2021 containing important information relating to ETHX has been filed with the securities commissions or similar authorities in each of the provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. A copy of the preliminary prospectus is available on www.sedar.com. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
About Galaxy Digital
Galaxy Digital Capital Management L.P. is an affiliate of Galaxy Digital Holdings Ltd. (TSX: GLXY) ("Galaxy Digital Holdings"). Galaxy Digital Holdings currently operates four distinct business lines, which include: Trading, Asset Management, Principal Investments and Investment Banking. Galaxy Digital Holdings’ 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.
About CI Global Asset Management
CI Global Asset Management is one of Canada’s largest investment management companies. It offers a wide range of investment products and services and is on the Web at www.ci.com. CI GAM is a subsidiary of CI Financial Corp. (TSX: CIX, NYSE: CIXX), an independent company offering global asset management and wealth management advisory services with approximately C$231.8 billion in total assets as at January 31, 2021.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.
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Senior Manager, Corporate Communications
CI Global Asset Management