Invesco Reapplies for Bitcoin ETF, Advocates for More Crypto Investment Products

Investment management company Invesco (IVZ), which has $1.4 trillion assets under management, reapplied for a spot bitcoin (BTC) exchange-traded fund (ETF).

In 2021, Invesco first filed for a bitcoin ETF in conjunction with Galaxy Digital. It also filed for a bitcoin futures ETF, but dropped the effort in October 2021 after a futures ETF by ProShares was approved and began trading first.

In its filing, Invesco argued that the lack of a spot bitcoin ETF pushes investors towards riskier alternatives, as seen in insolvencies like FTX, Celsius Network, BlockFi, and Voyager Digital Holdings.

Invesco also emphasized the need for investor protection, saying that approval for such a spot bitcoin ETF hinges on a surveillance sharing agreement with a significant, regulated market, not on the regulation of the spot bitcoin market itself.

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, argued that Nasdaq could be brought in to fill this role.

So far, the SEC hasn't given any indication as to when it plans to make an announcement regarding a bitcoin ETF.

(Source: CoinDesk)