Last week, the US Securities and Exchange Commission announced it would be approving Bitcoin futures ETFs. Invesco was among the firms that filed applications to start offering this product, but it is now dropping out of the race.
No Longer Pursuing a Bitcoin Futures ETF
Invesco Ltd is dropping out of the race to offer a futures-based Bitcoin exchange-traded fund. The firm’s announcement is a surprise, as only a few hours remain before the first BTC futures ETF starts trading on a US exchange.
A statement by the firm’s spokesperson to Bloomberg stated that,
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 a full shelf of products with exposure to this transformative asset class, including pursuing a physically backed, digital asset ETF.
Invesco has not yet filed a formal notice with the SEC withdrawing its application for a futures ETF. However, it had made a filing on Monday stating that it was postponing the date for its Bitcoin Strategy ETF towards the end of this month. This filing could show that the firm is missing some of the permissions needed to launch an ETF.
SEC Approves Futures-based ETF
Invesco dropped out of its pursuit for an ETF a few hours before the ProShares Bitcoin Strategy ETF starts trading in the US. Other firms that are also expected to gain approval for these products within the month include VanEck and Valkyrie.
There is a high likelihood that these funds whose deadlines are nearing will be approved, as the SEC Chief, Gary Gensler, has been more open towards futures-backed crypto ETFs. Futures ETFs have clearer investor protection strategies outlined in the law, making it easy for regulators to oversee these products.
The news of an ETF being approved by the SEC has created a bullish momentum in the crypto market. Bitcoin (BTC/USD) is only $2000 shy of its all-time high of above $64,000, having rallied by over 30% this month alone. Analysts have also speculated that the approval of an ETF will increase the acceptance and adoption of the primary cryptocurrency.
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