Invesco is partnering with Mike Novogratz’s Galaxy Digital to launch crypto ETFs | Currency News | Financial and Business News

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• Invesco is partnering with Galaxy Digital to launch a crypto ETF in order to be ready when the SEC approves digital asset funds.
• The companies aim to have the ETF track the performance of crypto as it trades like a stock.
• “Ultimately, we believe we can define this new market,” said Invesco’s John Hoffman.
• Sign up for our daily newsletter here, 10 things before the opening bell.

Invesco confirmed in a regulatory filing on Tuesday that it is partnering with Galaxy Digital Holdings to launch exchange-traded cryptocurrency funds and join a long list of over two dozen companies longing to be the first in the country, who set up a fund backed by digital assets.

Invesco, one of the largest ETF operators in the United States, and Mike Novogratz’s Galaxy Digital aim to have their ETF track the performance of cryptocurrencies as they trade like a stock.

First in the pipeline is a Bitcoin-holding ETF that Galaxy proposed last year and that Invesco joined as a sponsor after the market closed on Tuesday, the Wall Street Journal reported for the first time.

“This is about broadening your horizons,” John Hoffman, Invesco’s Head of Americas, told The Journal. “We ultimately believe that we can define this new market.”

Invesco and Galaxy are preparing their ETF to be ready in case the SEC ever approves crypto funds.

According to Hoffman, Invesco initially teamed up with Galaxy, a cryptocurrency enthusiast and former hedge fund manager Novogratz, which was founded in 2018 based on the company’s expertise in this area.

In June, Invesco also submitted two cryptocurrency-focused ETFs – the Invesco Galaxy Blockchain Economy ETF and the Invesco Galaxy Crypto Economy ETF – that will invest in stocks that focus on digital assets and technology.

“There are a number of ways to bundle these commitments. It’s no different from any other asset, ”Hoffman told The Journal. “We started with stocks and invested in companies involved in the exploration and production of energy. Then we got into futures and added other ways to get these various exposures.”

But despite the enthusiasm of various companies – with Cathie Wood’s Ark Invest the newest fund provider to submit its own application – the SEC does not seem to share this enthusiasm.

As of now, the regulator, led by Gary Gensler, has not yet approved a cryptocurrency ETF, including those proposed by VanEck, Valkyrie Investments and FirstTrust / SkyBridge. She has extended the decision to approve VanEck’s ETF by 60 days until November 14th.

Gensler previously taught courses on blockchain and cryptocurrencies at the MIT Sloan School of Management, which led some to believe that he would be more receptive to digital assets. But while he was running the SEC, he cracked down on cryptocurrencies. Most recently, he compared stablecoins with poker chips.

However, he has hinted that he is more open to cryptocurrency ETFs, suggesting that those who adhere to the strictest mutual fund rules could offer investor protection. He also seems inclined to approve a futures-based ETF.

The US is lagging behind other countries in approving Bitcoin ETFs, with Canada this year approving the first publicly traded Bitcoin ETF in North America, the Purpose Bitcoin ETF, as well as Ethereum ETFs.

source https://www.bisayanews.com/2021/09/22/invesco-is-partnering-with-mike-novogratzs-galaxy-digital-to-launch-crypto-etfs-currency-news-financial-and-business-news/