NYDIG Files for Bitcoin ETF in Association with Morgan Stanley

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  • NYDIG has joined the list of companies filing for a Bitcoin ETF
  • The filing sees Morgan Stanley named as the “initial Authorized Participant”
  • NYDIG is the third company to have filed for a Bitcoin ETF this year

New York Digital Investment Group (NYDIG) has filed for a Bitcoin ETF, with Morgan Stanley named as the authorized participant. The move takes the number of Bitcoin ETFs currently under consideration to three, and the addition of such a reputable name as Morgan Stanley to the mix raises the prospect that a Bitcoin ETF is more favorable than ever before, even if achieving one in the calendar year of 2021 might be something of a push.

NYDIG Benefits From Corporate Associations

NYDIG has been one of the real beneficiaries of the boom in institutional adoption of Bitcoin, with their bespoke custody services coming at just the right time. It currently looks after around $6 billion worth of bitcoin for its corporate clients, but recently stated that a $25 billion holding wouldn’t be out of the question by the end of the year.

Their corporate entanglements have clearly helped them in their ETF ambitions, as they were able to call upon the world’s 40th richest bank to underwrite their filing, who they name as their “initial Authorized Participant”, which helps with the legitimacy of their offering.

2021 Bitcoin ETF is Still Doubtful

NYDIG now joins VanEck/Cboe and Valkyrie in the race to launch the first Bitcoin ETF in the United States, five days after Canada received its first Bitcoin ETF through Purpose Bitcoin. Whether a Bitcoin ETF will be approved at all this year is debatable, as the time frame for the Securities and Exchange Commission to rule on such matters can often extend longer than a year.