Invesco exec discloses the reasons behind dropping Bitcoin futures ETF

Invesco, the $1.6 trillion asset manager of the United States, revealed the reasons behind dropping its decision of filing for a Bitcoin futures exchange-traded fund (ETF) in October.

The major reason for abandoning the petition, according to Anna Paglia, global head of ETFs and indexed strategies at Invesco, was that the US Securities and Exchange Commission is only looking for the BTC ETFs with a complete commitment to Bitcoin futures.

During the interview with Financial Times this Sunday, Paglia explained that the Invesco Bitcoin Strategy ETF was intended to be a combination of futures swaps, physical BTC, and private funds in the Bitcoin sector. She believes that such a mix would assist investors in protecting themselves from liquidity crisis situations. She further stated:

“We thought that CME futures were going to be a very effective element of the portfolio. We never thought they would be effective when they would be 100% of the product.”

As TheCoinRise reported in October, the CEO of the firm said that he is aiming for a massive increase in crypto exposure amidst the recent developments.

Invesco finds better ways to provide the service to investors

Paglia further added that Invesco has figured out better ways to provide this particular exposure instead of offering them something they didn’t require. She further talked about the firm’s concerns about the capacity and liquidity in the futures market.

The firm earlier applied for its Invesco BTC Strategy ETF in August when it planned to invest its assets in BTC futures and ETF products. It also planned to invest in BTC-linked private investment institutions like Grayscale Bitcoin Trust. Paglia informed that the firm filed for the ETF approval within 24 hours of SEC’s hint about regulator approving BTC futures ETFs traded on the Chicago Mercantile Exchange. Paglia noted, “It was instant ‘yes’ and see how it goes then ‘no’ and explain the decision. We had to make this hard choice and own the decision. I would do the same again.”