Alternative Investments/Digital: Invesco And Galaxy Digital To Partner On Crypto ETFs
The duo will develop a suite of U.S.-listed, physically-backed, digital asset exchange-traded funds.
Global asset management firm Invesco (NYSE: IVZ) and Galaxy Digital, (TSE: GLXY), the crypto and digital asset-focused company led by Mike Novogratz, have announced a collaboration for the development of U.S.-listed, physically-backed, digital asset exchange-traded funds. (Cision PRNewswire)
Though Canada has greenlighted crypto ETFs, in the US the SEC is yet to approve a bitcoin or other crypto ETF despite a mounting stack of applications. The SEC is led by Gary Gensler who has generally waxed critical of cryptocurrencies and lately had compared stablecoins to poker chips. Earlier, Gensler seemed to be in favor of crypto ETFs that were backed by derivatives.
The Invesco-Galaxy Digital tie-up likely aims to be ready in the event the SEC relaxes its stand on a bitcoin ETF.
“Invesco has a long history of using ETFs to democratize investor access to disruptive, innovative asset classes. Now, through our partnership with market leader Galaxy Digital, we are able to incorporate their expertise of blockchain technology, digital assets, and cryptocurrency into our product capabilities,” said John Hoffman, Head of Americas, ETFs & Indexed Strategies at Invesco, in a statement. “This combination of complementary strengths will help clients safely and prudently navigate this exciting new asset class to help meet their desired investment outcomes.”
The elusive bitcoin ETF
In April this year, Galaxy Digital filed with the SEC for a bitcoin ETF. After Gensler’s comments, several fund managers, including Galaxy, filed for a crypto ETF backed by futures.
At the time, Bloomberg’s senior analyst, Eric Balchunas, tweeted: “Galaxy just filed for a Bitcoin Futures ETF registered under 1940 Act and that will ONLY invest in futures, which is as Gensler-ready as you can get.”
On its tie-up with Invesco for crypto ETFs, Steve Kurz, Head of Asset Management at Galaxy Digital said: “Our partnership with Invesco, a longstanding ETF innovator, will bring the same thoughtful approach to educating investors about digital assets as Invesco has brought to the ETF industry itself.”
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