Invesco, a global investment management firm, has refiled for a spot Bitcoin (BTC) Exchange-Traded Fund (ETF) with the Securities and Exchange Commission (SEC) after two years of its initial filing. Interestingly, the move is a significant step towards launching a Bitcoin ETF, which has been a topic of discussion in the financial industry for several years.
However, the renewed application for a spot Bitcoin ETF comes at a time when the demand for BTC and other cryptocurrencies is on the rise. Institutional investors and retail investors alike are increasingly interested in investing in Bitcoin, but the lack of a regulated investment vehicle has been a major hurdle for the industry.
Hence, the Invesco effort to relaunch a Bitcoin ETF could help address these issues and provide investors with a more accessible and regulated investment vehicle for BTC. Also, the ETF would allow investors to gain exposure to BTC without having to purchase and store the cryptocurrency themselves.
Invesco FILING: SEC Reluctant to Approve Spot Bitcoin ETF
Meanwhile, the SEC has been hesitant to approve a Bitcoin ETF due to concerns about market manipulation and the lack of regulation in the cryptocurrency industry. However, Invesco’s renewed application could indicate a shift in the SEC’s stance on Bitcoin ETFs.
Likewise, the firm’s renewed application includes changes to the fund’s structure and investment strategy, which could address the concerns raised by the SEC in the past.
Unlike other firms that have attempted to launch similar products in the past, only to face continuous denials from the SEC, Invesco’s entry into the spot Bitcoin ETF space brings a significant impact on the cryptocurrency industry. If approved, the Invesco Bitcoin ETF would be the first of its kind in the United States.
Recall that BlackRock, the world’s largest asset manager filed with the SEC to launch a Bitcoin Spot ETF, although the product is yet to see the light of day in the U.S. BlackRock will be partnering with Coinbase, a leading American cryptocurrency exchange to utilize their custody services for the Bitcoin that will back the ETF.
Additionally, VanEck refiled for spot BTC ETF days after Grayscale’s application was rejected by the regulatory watchdogs.