Invesco has revealed that it dropped the application for a bitcoin ETF since the Securities and Exchange Commission only approves ETFs with 100% exposure to BTC futures.
The asset manager’s head of ETFs, Anna Paglia, maintains that the Invesco Bitcoin Strategy ETF was a combination of future swaps and private funds. Paglia maintains that such a fund could cushion the investors in the face of a liquidity crisis. She says that there are concerns around liquidity and capacity in the futures market.
Invesco bitcoin Strategy ETF had aimed to invest in bitcoin private investment trusts and bitcoin futures. The firm unveils that they applied for the ETF after the SEC’s chair hinted at approving CME bitcoin futures ETFs.
The asset manager dropped its application for a BTC ETF in October. Bitwise took a similar move, dropping the application for a bitcoin futures ETF and opting to continue to push for a spot bitcoin ETF instead.