Invesco, a renowned investment management firm, has refiled its application for a bitcoin exchange-traded fund (ETF) two years after initially filing. In October 2021, Invesco proposed a bitcoin ETF and a bitcoin futures ETF. However, they abandoned the proposal when ProShares’ futures ETF received approval and began trading.
An ETF is an investment product that tracks stocks, bonds, currencies, commodities, or the stock market. It allows investors to participate in the market without owning the underlying asset. A Bitcoin ETF would enable investors to purchase shares that mirror the price of the world’s oldest and most valuable cryptocurrency, witout actually owning any of it.
In its latest filing, Invesco pointed out the absence of a spot Bitcoin ETF as a factor pushing investors towards riskier alternatives. The company specifically mentioned insolvencies within FTX, Celsius Network, BlockFi, and Voyager Digital Holdings, underscoring the need for a regulated and secure investment option.
With an emphasis on investor protection, Invesco argued that the approval of a spot Bitcoin ETF should be contingent upon a surveillance-sharing agreement with a substantial and regulated market. The Securities and Exchange Commission (SEC) is highly concerned about market manipulation and believes surveillance-sharing agreements on market trading activity, clearing procedures, and customer identification could greatly reduce this risk.
Invesco’s decision to reapply is likely influenced by BlackRock’s recent application, considering BlackRock’s significant involvement in the investment management business.
BlackRock, in its application, supported Invesco’s perspective and proposed involving Nasdaq as a regulated market to establish a surveillance-sharing agreement.
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