Invesco, a prominent investment management company with $1.5 trillion in assets under management, has refiled an application for a spot Bitcoin exchange-traded fund (ETF), signaling its continued interest in the rapidly growing cryptocurrency market. The decision comes in response to BlackRock’s recent application for its own spot bitcoin ETF, which has spurred other firms to follow suit.
This is not the first time Invesco has sought approval for a Bitcoin ETF. In 2021, the company initially filed for a Bitcoin ETF in collaboration with Galaxy Digital. It also filed for a Bitcoin futures ETF but abandoned the effort after ProShares’ futures ETF gained approval and started trading before theirs.
In its recent filing, Invesco highlights the risks associated with the absence of a spot bitcoin ETF. The company argues that the lack of such a regulated investment vehicle pushes investors toward riskier alternatives. It points to instances of insolvency, such as those witnessed with FTX, BlockFi, Celsius Network, and Voyager Digital Holdings, where investors who sought exposure to cryptocurrencies through these platforms became unsecured creditors. Invesco believes that a spot bitcoin ETF would provide a safer and more transparent investment option, protecting investors from potential losses due to fraud or insolvency.
To address concerns raised by regulatory bodies, Invesco emphasizes the importance of surveillance sharing agreements. These agreements facilitate the exchange of information related to trading activity, clearing processes, and customer identification, significantly reducing the potential for market manipulation. The Securities and Exchange Commission (SEC), which has expressed concerns about market manipulation in the past, has yet to provide any indication of when it will announce its decision regarding a Bitcoin ETF.
In addition to advocating for a spot Bitcoin ETF, Invesco also supports the expansion of other crypto investment products. The company believes that offering a wider range of regulated investment options in the cryptocurrency space would not only meet the growing demand from investors but also provide enhanced investor protection.
The recent filing by WisdomTree, another investment firm, for a spot Bitcoin ETF further underscores the industry’s interest in these types of investment vehicles. The lack of a regulated spot Bitcoin ETF leaves U.S. investors exposed to significant risks and forces them to seek alternative, riskier means of gaining cryptoasset exposure.
In summary, Invesco’s reapplication for a spot bitcoin ETF demonstrates its commitment to providing investors with regulated and secure avenues for investing in cryptocurrencies. The company’s push for more crypto investment products aligns with the growing demand for these assets while emphasizing the need for investor protection and regulatory oversight. The outcome of Invesco’s application, as well as those of other investment firms, will be eagerly awaited by both investors and industry participants as they look for greater access to the evolving digital asset market.