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Invesco rolls out physically-backed Bitcoin ETP By BTC Peers

by Mike Robinson

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© Reuters. Invesco releases a Bitcoin ETP that is physically backed

American investment management company Invesco just unveiled an exchange-traded, physically-backed product (ETP).

The Invesco Physical Bitcoin ETP will operate on a fixed annual fee of 0.99% while the BTC will be held by Zodia Custody, a U.K.-based custodian registered with the U.K.’s Financial Conduct Authority (FCA).

One of Europe’s largest digital asset firms, CoinShares, will sponsor the ETP and will also assume the role of execution agent.

The ETP, which is one of the U.K.s first BTC ETPs, comes somewhat surprisingly as the country’s officials are quite skeptical of the crypto market.

Invesco launched the product concurrently as an exchange traded note (ETN), on the digital stock Exchange Xetra operated by Deutsche Boerse, a German stock market operator (DE:). ETNs, a type of ETPs, are an alternative to ETPs.

BTIC is the product symbol and it tracks the CoinShares Bitcoin Hourly Rate Index. The product has been also registered with German financial institutions.

Invesco’s Head of ETFs and Indexed Strategies Gary Buxton spoke of the appeal of physical Bitcoin backing, explaining that:

The physical bitcoin market is more visible. Our concern was about synthetic liquidity and how it might affect valuations. We weren’t comfortable with that.

Galaxy Digital is also working with the company to launch a Bitcoin ETF in U.S., in what could prove to be its most significant move. Meanwhile, India’s securities regulator has also approved an Invesco crypto ETF against all odds amid the regulatory uncertainty in the country.

If certain conditions are met, it’s clear that this year regulators were more inclined to approve cryptocurrency products. Protecting investors has always been the top priority. This is why the United States Securities and Exchange Commission, (SEC), has been reluctant in approving a direct Bitcoin ETF.

A handful of bitcoin futures ETFs were approved by the U.S. with ProShares trading over 24 million shares in its first day. Gary Gensler (SEC Chair) seems to love bitcoin futures ETFs, but not spot ETFs.

Global approvals of crypto products have been increasing, and Europe is no exception. Crypto companies will adapt to the regulations and be able to offer more spot ETFs to the market. These will positively impact inflows.

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