Anna Paglia, the prominent executive working at Invesco, elaborated that the firm thereof withdrew Bitcoin Futures ETF filing due to the rules of the SEC (Securities and Exchange Commission). Apart from this, the filing submitted by Bitwise Asset Management was additionally pulled off regarding the futures-based ETFs, mentioning that such a decision is not suitable in the long run.
Invesco provided its clarification
Invesco (a USA-based investment company having more than $1.5T in assets under its management) applied with the SEC to introduce two crypto-based ETFs during this year’s August. After a few months, the firm pulled off the applications thereof only hours in advance of the supposed time of its Bitcoin Futures ETF’s launch and remained unsuccessful in providing any explanation for the decision.
Anna Paglia (the ETFs Global Head as well as Indexed Strategies under Invesco), in the latest interview, elaborated that such a choice would turn out to be too expensive for the respective investors. She emphasized that such rules implemented by SEC would add to taking the Bitcoin Futures ETFs’ prices to a higher level than the spot’s and cause trouble for the investors.
The commission permits ETFs with only Bitcoin’s futures contracts’ exposure of up to 100%, which is not the target of Invesco. Rather, the executive disclosed that the desired portfolio of the firm thereof was a combination of futures contracts, ETFs, swaps, physical bitcoin, as well as private funds to be invested in the industry.
In this way, she opined that investors would get complete protection when dealing with a liquidity crisis. Bitwise Asset Management’s Chief Investment Officer, Matt Hougan, provided an analogous elaboration for moving backward from getting a futures-based BTC ETF’s launch. He considers that this type of product would be much expensive for their investors, as well as would not either be adequate in the long run and many better chances can be availed rather this one for the long-term investors.
Success of BITO
On 19th October, the earliest futures-based Bitcoin Strategy ETF witnessed a success. This was termed as a prominent accomplishment for the industry of cryptocurrency since this type of product was not available in the United States until then. BITO earned up to $1B in its trading volume just on the day of its opening, and thus, turned out to be the second most traded fund of all time.
