Hours before the first Bitcoin Futures ETF is anticipated to start trading on the New York Stock Exchange (NYSE), Invesco has reportedly dropped its plans to launch a similar product.
- According to Bloomberg, major investment management firm Invesco seems no longer interested in the race to release a Bitcoin Futures exchange-traded fund (ETF).
- While Invesco did not give any reason for its withdrawal, seeing as it was close to also receiving approval, a spokesperson for the company said that it would work on launching a physically-backed Bitcoin ETF.
- “We have determined not to pursue the launch of a Bitcoin futures ETF in the immediate near-term; however we will continue to work in partnership with Galaxy Digital to offer investors full shelf of products with exposure to this transformative asset class, including pursuing a physically-backed, digital asset ETF.”
- Investors and stakeholders in the United States have been looking forward to a Bitcoin ETF approval from the Securities and Exchange Commission (SEC). Countries like Canada and Brazil already have several greenlighted exchange-traded funds tracking the performance of BTC.
- Meanwhile, on October 15, the SEC allowed a Bitcoin Futures ETF to launch in the U.S. While this is a major milestone, considering the regulator’s rejections of several applications over the years, the industry would prefer a product that directly invests in BTC and hopes that the SEC would approve a standard Bitcoin ETF soon.
- SEC Chairman Gary Gensler has, however, expressed support for a futures-backed Bitcoin ETF, stating that it offers better protection for investors.
- The first Bitcoin Futures ETF product by ProShares is expected to begin trading on the NYSE on Tuesday, October 19.
- Meanwhile, Grayscale, the world’s largest cryptocurrency asset manager, reportedly plans to apply with the SEC to convert its BTC Trust to a Bitcoin spot ETF.