Invesco joins forces to campaign for the creation of cryptocurrency exchange-traded funds (ETFs).
Invesco Ltd is, at present, one of the biggest players in the US market when it comes to ETFs, or exchange-traded funds. Invesco is currently making plans to come out with a line of funds that are backed by cryptocurrencies.
The Atlanta-based company announced on Wednesday that it was going to work together with Galaxy Digital Holdings Ltd.
Galaxy Digital Holdings is a digital asset firm. Together with Invesco, they plan to develop listed ETFs within the US that can track the performance of cryptocurrencies. At the same time, these can also be traded like a stock.
Invesco, Galaxy Holdings, and ETFs
Through this collaboration, Invesco and Galaxy Holdings want to be prepared in the event the SEC approves the trading of digital assets.
One of the ETFs that are currently being planned is the ETF on Bitcoin. This ETF was first mentioned by Galaxy Holdings in spring. When the stock markets finally closed on Tuesday, Galaxy Holding revised its filing with the SEC. Invesco was made the sponsor.
The SEC and ETFs
The SEC is currently a hurdle when it comes to listing ETFs of bitcoins. The SEC has already delayed its decision when it comes to proposals dealing with cryptocurrency before. The biggest fear is that if the funds can’t be monitored and traced, then they could become vulnerable to fraud.
Just last week, the Chairman of the SEC, Gary Gensler, reiterated his concerns to the Banking Committee of the Senate. Previously, in August, Gensler had revealed that he found ETFs dealing in bitcoin futures to be a better bet than cryptocurrency.