Invesco Reportedly Abandons Plans to Launch Bitcoin Futures ETF
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.
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