Just-In: Galaxy Digital and Invesco File Joint Physical Bitcoin ETF Proposal

Galaxy Digital, a leading crypto asset manager along with Invesco has filed a joint physical Bitcoin ETF proposal to push the crypto ETF effort in the US. The move came in as a surprise given the majority of Bitcoin ETF filing over the past month has been for Bitcoin Strategy ETF that offers investment in BTC Futures products.

*Invesco Teams Up in Push to Create Crypto ETFs

*Invesco Teams With Galaxy Digital in U.S. Crypto ETF Effort

— *Walter Bloomberg (@DeItaone) September 22, 2021

According to the Tuesday SEC filing, the Invesco Galaxy Bitcoin ETF would offer direct exposure to Bitcoin ($BTC) and it would track the Bloomberg Galaxy Bitcoin index. The joint venture aims to hold Bitcoin in their trust and issue shares against it. The joint venture has selected Delaware Trust Company as the Bitcoin custodian. The official filing read,

“The Trust will value its Shares daily based on the value of the Index as of 4:15 p.m. ET, which is calculated based on data from bitcoin pricing sources selected by Bloomberg Index Services Limited (the “Index Provider”) that have met the Index Provider’s selection criteria, including pricing consistency, frequency, and quality (“Pricing Sources”). Invesco Capital Management LLC (the “Sponsor” or “Invesco”) is the sponsor of the Trust, Delaware Trust Company (the “Trustee”) is the trustee of the Trust, and [ ] (the “Bitcoin Custodian”) will hold all of the Trust’s bitcoin on the Trust’s behalf as custodian.”

Commodity Analyst Predict Bitcoin ETF Approval by Next Month

Bloomberg ETF analyst Eric Balchunas has predicted last month that a Bitcoin Futures ETF could be approved by October as the number of Bitcoin Strategy ETFs soared after SEC chief Gary Gensler claimed that a Futures based crypto ETF has higher chances of getting the regulatory body nod. As a result of Gensler’s comments, VanEck withdrew its Ethereum ETF proposal after filing for a Bitcoin Futures ETF.

Balchunas also noted that once a crypto Futures ETF is approved, the physical ETF proposals won’t lag behind and can get regulatory approval by early next year.

Interesting given Genz has signaled he won't approve any 33 Act filings (which this is). Perhaps they just want to be in race just in case. In the meantime, Invesco is in good position to get their bitcoin futures etf approved in October.

— Eric Balchunas (@EricBalchunas) September 21, 2021

The current state of regulations in the US seems to be complex, but crypto proponents hope for a regulatory clearance soon and especially the approval of the first crypto ETF in the US.