Invesco reapplies for Bitcoin ETF and supports the creation of additional crypto investment products.
The investment management company, Invesco (IVZ), with $1.4 trillion in assets under management, has reapplied for a Bitcoin (BTC) exchange-traded fund (ETF).
Invesco first filed for a Bitcoin ETF in partnership with Galaxy Digital in 2021. It also applied for a Bitcoin futures ETF, but abandoned the effort in October 2021 after a futures ETF by ProShares was approved and began trading first.
In its filing, Invesco argued that the absence of a spot Bitcoin ETF pushes investors towards riskier alternatives, as evidenced by insolvencies like FTX, Celsius Network, BlockFi, and Voyager Digital Holdings.
Invesco also emphasized the need for investor protection, stating that approval for such a spot Bitcoin ETF hinges on a surveillance-sharing agreement with a significant regulated market, rather than the regulation of the spot Bitcoin market itself.
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Surveillance-sharing agreements facilitate the exchange of information concerning market trading activity, clearing processes, and customer identification, which would significantly reduce the potential for market manipulation – something the Securities and Exchange Commission is very concerned about.
BlackRock (BLK), in its filing, advocated for the same thing, arguing that Nasdaq could be brought in to fill this role.
“The SEC is very concerned with market manipulation related to Bitcoin prices and has cited this in almost, if not all, previous rejections,” said Graeme Moore, Head of Tokenization at the Polymesh Association, in an earlier statement to blockchain. “This is because the SEC’s view is that Coinbase and others are not regulated as exchanges and therefore cannot be trusted to ‘prevent fraudulent and manipulative acts and practices’.”
So far, the SEC has not given any indication as to when it plans to make an announcement regarding a Bitcoin ETF.
Grayscale (which currently shares common ownership with blockchain in Digital Currency Group) has sued the SEC over its rejected Bitcoin spot ETF. Speaking at blockchain’s Consensus conference in Austin, GrayScale CEO Michael Sonnenshein said he expects a decision in the case by September.
Edited by Parikshit Mishra.