CI Global Asset Management (CI GAM) has completed the merger of CI Galaxy Bitcoin Fund (BTCG), a closed-end investment fund, into CI Galaxy Bitcoin ETF (BTCX).
Unitholders of the Terminating Fund received units of the ETF US$ Series of the Continuing ETF (TSX: BTCX.U) based on the exchange ratio for each unit of the Terminating Fund held as at 7 May, 2021. No fractional units of the Continuing ETF, or cash in lieu thereof, were issued or paid pursuant to the merger.
The merger took place on a taxable basis and would be considered a disposition for tax purposes. However, the Terminating Fund and the Continuing ETF did not pay distributions to unitholders as a result of the merger. Units of the Terminating Fund were delisted from the Toronto Stock Exchange at the close of business on 7 May, 2021.
CI GAM undertook the merger because it believes that the ETF structure offers increased liquidity through continuous distribution and the potential benefits of greater economies of scale. The Continuing ETF also has a management fee of 0.40 per cent – the lowest of any bitcoin ETF – and its management expense ratio (“MER”) has been capped at 0.95 per cent – the lowest published MER cap of any bitcoin ETF. The costs and expenses associated with the merger are being borne by CI GAM and not by the Fund or the ETF. The Terminating Fund and the Continuing ETF share the same investment mandate and portfolio management team at Galaxy Digital Capital Management LP.
The Continuing ETF also offers Canadian dollar unhedged units (BTCX.B).
