ETFs are the newest buzzword in the crypto space. Amplify, Invesco, and Galaxy Digital are among the latest companies to tread into the territories of ETF.
ETF stands for exchange-traded funds. The aforementioned companies have applied for ETF products in a recent series of filing for ETFs. Unlike Amplify, Galaxy Digital and Invesco have applied for physically-backed bitcoin ETF. What makes the physical ETF different from other ETFs is the capability of tracking target indexes by getting hold of underlying assets of the concerned index. It either holds a portion of assets or the whole. Amplify, on the other hand, has shown interest in decentralized finance and cryptocurrency ETF. The regulatory filings from these companies have revealed all this information.
In the case of Amplify, if their application is granted, they would be allowed to invest funds in bitcoin features. They can also invest in Canadian bitcoin funds and in businesses that have over 50% of their total assets in some form of liquid cryptocurrencies like BTC and ETH. Grayscale Bitcoin Trust and Canadian bitcoin ETFs will get an initial investment of 15% of the total assets. However, the necessary prospectus is now under process and major back-end roles are yet vacant. For instance, they do not yet have a bitcoin custodian. Earlier, Invesco also made their application for futures-linked bitcoin ETF to the United States SEC (Securities and Exchange Commission). The conclusive decision on their application will be made in October. SEC is already reviewing many other applications. Their approach towards granting or not granting these will determine the future of ETFs to a big extent.