Invesco Executive Explains Reasons for Withdrawal of Bitcoin Futures ETF Application


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[Blockchain Today Correspondent Kim So-yeon] After withdrawing its application for a Bitcoin futures exchange-traded fund (ETF) in October, Invesco, a US$1.6 trillion asset management company, disclosed the reason for the withdrawal.

According to a Cointelegraph report on the 22nd (local time), Anna Paglia, global head of ETF and index strategy at Invesco, said, “The reason for the withdrawal of the application is that the U.S. Securities and Exchange Commission (SEC) is 100% exposed to Bitcoin futures. “It’s because we only approved Bitcoin ETFs,” he said.

In an interview with the Financial Times on the 21st, Paglia said, “The Invesco Bitcoin Strategic ETF is designed to be an ideal mix of futures swaps from the Bitcoin industry, real Bitcoin, and private funds. It will help protect investors when they do,” he added.

“We thought CME futures would be a very effective component of our portfolio,” he added.

“I realized that Invesco had a better way to give investors this specific exposure instead of giving them what they didn’t need,” Paglia said. He also noted concerns regarding the capacity and liquidity of the futures market.

Invesco originally applied for the Invesco Bitcoin Strategy ETF in early August with plans to invest its assets in Bitcoin futures and exchange-traded products and in Bitcoin-linked private investment trusts such as Grayscale Bitcoin Trust. According to Paglia, 24 hours after SEC Chairman Gary Gensler suggested that regulators could approve a Bitcoin futures ETF traded on the Chicago Mercantile Exchange, Invesco applied for the ETF.

“It was easier to say ‘yes’ than ‘no’ and explain the decision by seeing how it went. We had to make this difficult choice and we had to admit it. Even if the same situation came, we would make the same choice,” he said. added.

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