Invesco resubmits its application for a spot Bitcoin ETF on the grounds that it will improve investor safeguards.
On June 20th, the Securities and Exchange Commission (SEC) received a new application for a spot Bitcoin exchange-traded fund (ETF) from U.S.-based investment management Invesco. In collaboration with Galaxy Digital, the company has previously applied for a spot Bitcoin ETF in September 2021. It also submitted an application in August 2021 for a futures ETF product called “The Invesco Bitcoin Strategy ETF” but then withdrew it in October 2021 without giving a reason.
Shortly after WisdomTree and BlackRock both submitted applications for spot ETFs, Invesco decided to re-file its spot Bitcoin ETF application. The largest investment manager in the world, BlackRock, has been credited with significantly boosting institutional interest in Bitcoin, which may have increased the availability of financial instruments related to Bitcoin for institutional investors.
Invesco emphasized in its re-filing that earlier ETF approvals were predicated on the exchange having a “surveillance sharing agreement” as opposed to regulatory coverage of the spot market. It compared the existence of spot gold products to the largely uncontrolled spot gold market.
Invesco’s application made a point of highlighting the additional investor safety that its product provides over directly purchasing Bitcoin, including defenses against insolvency and cyberattacks.
The mention of investor suffering brought on by multiple decentralized finance (DeFi) bankruptcy in the preceding year shows that Invesco intends to allay fears regarding the dangers of offshore vehicles with lax regulations. The company claimed that American investors would have a safer option to using such vehicles if a spot Bitcoin ETF were approved.
Invesco is requesting regulatory approval to launch an ETF that tracks the price of Bitcoin and enables investors to get exposure to the cryptocurrency without actually owning it by resubmitting its spot Bitcoin ETF application. The emphasis on regulatory monitoring and investor protection in the document suggests that Invesco wants to allay any potential concerns voiced by the SEC in order to get approval for its ETF proposal.