Toronto-based CI Global Asset Management has filed the final prospectus for the initial public offering of the CI Galaxy Bitcoin Fund.
A $350-million offering of the closed-end fund is expected to occur on or about Dec. 16, subject to customary closing conditions and regulatory approvals, according to a release.
The fund — which has been conditionally approved to trade on the Toronto Stock Exchange (TSX) in U.S.-dollar and Canadian-dollar units — will invest directly in Bitcoin, with its holdings priced using the Bloomberg Galaxy Bitcoin index.
Class A units of the fund will be listed on the TSX. Class C and Class F units will not be listed on an exchange but will be reclassified as Class A units upon the closing of the offering.
The offering is being led by CIBC Capital Markets and a syndicate of agents including BMO Nesbitt Burns Inc., Canaccord Genuity Corp., Industrial Alliance Securities Inc., Richardson Wealth Limited, Echelon Wealth Partners Inc., Hampton Securities Limited, Leede Jones Gable Inc., Mackie Research Capital Corporation and PI Financial Corp.
The agents have an option to purchase up to 15% of the Class A units at the closing date of the offering.
Galaxy Digital Capital Management LP, an investment manager in the digital asset and blockchain technology sector, will serve as subadvisor of the fund and execute all Bitcoin trading on behalf of the fund.
Last November, Toronto-based 3iQ Corp. filed a prospectus for the first Bitcoin fund available to mainstream investors.