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Invesco reveals reasons for dropping Bitcoin futures ETF


One of the largest American investment companies, Invesco, explained the refusal to launch an exchange-traded fund (ETF) based on Bitcoin (BTC) futures by regulatory restrictions that would make the instrument too expensive for investors. The Financial Times reported this.

“We thought that Chicago Mercantile Exchange (CME) futures were going to be a very effective element of the portfolio. We never thought they would be effective when they would be 100%”. Explained Anna Paglia, head of ETF and index strategies at Invesco.

Thus, the company believes that the basket should include the cryptocurrency itself, futures, swaps and private funds to protect investors from liquidity depletion.

The second most active trading debut

“We conducted a series of simulations, during which the cost of transferring futures was 60-80 basis points per month. We are talking about serious numbers, 5-10% in annual terms,” Paglia added.

Invesco recalled that they submitted an application to launch a Bitcoin ETF within a day. After the head of the US Securities and Exchange Commission (SEC); Gary Gensler announced the need for documents to comply with the 1940 law on investment companies.

On October 15, the SEC approved an application for an ETF based on Bitcoin futures from ProShares. Therefore, launched on October 19, the fund showed the second most active trading debut.

VanEck’s Bitcoin Strategy ETF

Recall that previously in November, VanEck announced launching a Bitcoin futures ETF.

VanEck’s Bitcoin Strategy ETF will begin trading on CBOE on Tuesday under the ticker symbol XBTF, according to an official notification from the Chicago Board Options Exchange (CBOE).

In addition, VanEck’s new ETF joins a growing number of BTC futures-based ETFs in the United States. Moreover, including the ProShares Bitcoin Strategy ETF, which became the first Bitcoin futures ETF on the New York Stock Exchange on Oct. 19. In late October, Valkyrie’s Bitcoin Strategy ETF began trading on Nasdaq under the BTF ticker.

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