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Galaxy Digital and Invesco submit a joint physical Bitcoin ETF proposal

Updated: Aug 23, 2024
Published: Sep 22, 2021
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The battle to launch the first crypto ETF in the United States gets tougher as more firms submit proposals to the SEC.

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Invesco and Galaxy Digital partner on a Bitcoin ETF

Asset management firms Galaxy Digital and Invesco have partnered to file a proposal with the United States Securities and Exchange Commission to launch a Bitcoin exchange-traded fund (ETF).

The proposal was filed with the SEC yesterday, and the fund seeks to track the performance of Bitcoin, the leading cryptocurrency in the world. Per the filing, the Invesco Galaxy Bitcoin ETF will custody physical Bitcoin while tracking the performance of the Bloomberg Galaxy Bitcoin Index.

It is still unclear the exchange that the fund would be made available to institutional investors. Furthermore, the asset manager hasn’t decided on the ticker symbol for the new fund.

SEC still reluctant on a physical Bitcoin ETF

The proposal by Invesco and Galaxy Digital differs from the recent Bitcoin ETF applications submitted by other firms. The US SEC has raised concerns over Bitcoin’s volatility and risk of market manipulation. The regulator said it favors an ETF that tracks Bitcoin’s investment products rather than the physical BTC.

This has resulted in numerous firms filing for a Bitcoin futures ETF with the United States regulator. Despite that, the US SEC is yet to approve a single cryptocurrency ETF application.

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