In a move that surprised some experts, Invesco Ltd, an investment management company with $1.3 trillion in assets under management, decided not to immediately pursue its Bitcoin futures application.
“We have determined not to pursue the launch of a Bitcoin futures ETF in the immediate near-term,” an Invesco spokesperson told Bloomberg.
The firm added that it will carry on with its Galaxy Digital partnership to offer investors a “full shelf of products” with exposure to digital assets, including a physically-backed Bitcoin ETF.
SHOCKER: Invesco is dropping out of the race. Will not pursue bitcoin futures ETF, focus on blockchain stock ETFs (and spot bitcoin ETF) instead. Not sure why, esp bc they were next in line.. pic.twitter.com/iCenVoiMGb
A physical Bitcoin ETF is an investment vehicle designed to track the actual price of the underlying asset, with shares in the fund trading on a traditional stock exchange. In essence, Bitcoin ETFs would give investors exposure to the world’s largest cryptocurrency without the need to purchase and store the asset itself.
A futures ETF, on the other hand, is a contractual agreement that obligates a trader to buy or sell an asset (Bitcoin in this case) at a specific time, quantity, and price. Chicago Mercantile Exchange is currently the only regulated platform in the U.S. that offers Bitcoin futures.
Invesco was one of the first firms to apply for a futures-based Bitcoin ETF in August, soon after the SEC chair Gary Gensler revealed that the regulator is likely to favor such a product rather than a physical Bitcoin ETF tied to the actual asset.
With ProShares launching a Bitcoin futures ETF on Tuesday, Invesco was expected to become the second company with a similar offering, as its application wasn’t formally rejected by the SEC before the October 19 deadline.
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Invesco: Delayed temporarily?
However, the decision to drop the filing could be only temporary. Per an amended filing with the SEC, Invesco is delaying the effective date of its Bitcoin Strategy ETF until October 29, 2021.
One possible reason for the delay is that, according to the original filing, apart from Bitcoin futures, the Invesco Bitcoin Strategy ETF would also seek exposure to other investment vehicles including Bitcoin electronic-traded notes (ETNs) and ETFs traded outside of the U.S., as well as private investment trusts such as Grayscale Bitcoin Trust (GBTC).
This week marks a major milestone in the crypto world as the first U.S. Bitcoin ETF begins trading on Tuesday. The news fueled a rally last week, driving the price of Bitcoin above $60,000 for the first time since May.
The ETF, officially known as the ProShares Bitcoin Strategy ETF and set to trade under the ticker BITO, offers a new way to buy Bitcoin on the stock market.
To answer all your potential questions, including how to buy it, Decrypt has prepared this plain English Q&A. This is not in...
Two other Bitcoin futures ETFs that may also begin trading next week are the VanEck Bitcoin Strategy ETF and the Valkyrie Bitcoin Strategy ETF—those two filings have October 24 and October 25 deadlines for the SEC first response, respectively.
If approved, however, the SEC does not have to provide a response as to why, leaving prospective applicants in the dark about what works and what doesn’t.
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Bitcoin Bull Run
A continuously updated selection of stories explaining the price movements of Bitcoin, Ethereum and other major cryptocurrencies during the current bull run.
The price of Bitcoin continues to surge, with spot Bitcoin ETFs in the rearview mirror and the halving coming in April. Renewed euphoria has swirled as the price of Bitcoin skyrocketed to $64,000 on Wednesday.
“Fourth Bitcoin bull market, and this all feels very different,” prominent Bitcoin podcast host Peter McCormack said on Twitter.
Fourth #bitcoin bull market and this all feels very different.
Lessons from the others:- 2013 spent all my #bitcoin and traded CFDs. Ended 2013 with 0 #bitcoin....
Bitcoin today hit $39,000 per coin for the first time since a brutal digital asset crash in May 2022 that brought with it a long and painful bear market.
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Could this mean we’re seeing the beginning of a bull run? Some experts say it’s only up from here.
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Canadian investor Kevin O'Leary, better known as "Mr. Wonderful" on the investment pitch series "Shark Tank," is personally investing in Bitcoin. But he doesn't think institutional investors like mutual funds and insurers are, despite what others say.
"You bring on guests all the time that say, 'Oh, institutions are getting into Bitcoin.' That's BS," he told Oliver Renick of the TD Ameritrade Network today. "They are not yet. There is no institution out there, any sovereign or pension plan, that...