Invesco and Galaxy Digital Jointly File for a Physical Bitcoin ETF
Leading global investment management firm Invesco and crypto-asset management firm Galaxy digital has submitted a joint application to the U.S. Securities and Exchange Commission (SEC) for a physically backed Bitcoin exchange-traded fund (ETF).
As said, shares of this Bitcoin ETF shall be backed physically by the underlying asset. A bitcoin ETF is basically a publicly traded investment vehicle that tracked the underlying crypto asset. Once approved, the shares of the fund trade on the traditional stock exchange.
Thus, a Bitcoin ETF would give investors an opportunity to seek exposure to the world’s largest cryptocurrency without actually directly buying it. This also eliminates the hassle of storing the digital asset.
As per the SEC Filing submitted Tuesday, September 21, the Invesco Galaxy Bitcoin ETF will track the performance of the Bloomberg Galaxy Bitcoin Index. Although this Bitcoin ETF plans to custody physical Bitcoin, it hasn’t yet decided the custodian. Besides, they haven’t even revealed the ticker symbol for the shares of the Bitcoin ETF to trade.
The U.S. SEC has been tough while Bitcoin ETF proposal in the past and has yet to approve the first BTC ETF in the U.S. markets. In the past, the securities regulator has raised several concerns of Bitcoin’s volatility and the risk of market manipulation.
Recently, SEC Chairman Gary Genseler referred to cryptocurrencies as a high speculative asset class. Currently, there are a dozen Bitcoin ETF application with the U.S. SEC awaiting approval, all filed under the 1993 Securities Act.
Besides, there are nine other Bitcoin ETF applications tied to bitcoin futures. Recently, Gensler hinted that the SEC would be keen to approve a Bitcoin ETF that tracks BTC futures instead of the underlying physical assets.
Bloomberg Intelligence commodity strategist Mike McGlone believes that it’s only a matter of time that the U.S. SEC approves the country’s first Bitcoin ETF. He further added that it could potentially happen by the next month of October.
Institutional players have been using their muscle to convince the SEC in approving the first Bitcoin ETF. In its recent meeting with the U.S. SEC, institutional giant Fidelity Investments pushed the regulator to approve the BTC exchange-traded fund.
Fidelity cited several key reasons for approving the Bitcoin ETF. This includes the growth in the number of Bitcoin holders, the increased investor appetite for digital assets, and the approval of Bitcoin ETF in other countries.
While the U.S. has been lagging behind in approving the Bitcoin derivatives product, Canada has taken a lead. The Canadian regulators have already approved Bitcoin ETFs from 3iQ and Coinshares, back in April.