Proposed Invesco Galaxy Bitcoin ETF Will Generate Cash In Latest S-1 Amendment

Key Points:

• Invesco and Galaxy resubmitted the Invesco Galaxy Bitcoin ETF prospectus to the SEC on December 14.
• Analysts note the SEC’s preference for cash-for-Bitcoin exchange trading.
• The SEC also delayed its decision on the Invesco Galaxy Ethereum ETF.

On December 14, Invesco and Galaxy resubmitted their altered Invesco Galaxy Bitcoin ETF prospectus (S-1) to the US Securities and Exchange Commission (SEC), signaling a preference for cash creation methods.

Invesco Galaxy Bitcoin ETF Resubmission Signals Shift in SEC Preference

Bloomberg ETF analyst Eric Balchunas notes this move as an indication of the SEC’s inclination toward cash-for-Bitcoin exchange trading for initial ETF approvals, contrary to the market’s focus on in-kind creation methods.

The Invesco Galaxy Bitcoin ETF, if listed on Cboe, could have widespread implications for investors and the market. In June, Invesco joined industry leaders BlackRock and WisdomTree in seeking SEC approval for the ETF, expanding investment channels.

SEC’s Caution Continues: Delay in Decision on Invesco Galaxy Ethereum ETF

The SEC, currently deliberating on a proposed Ether ETF by Invesco and Galaxy, announced a delay in the decision. The extension allows a more comprehensive examination of the rule change proposal for listing and trading shares of the Invesco Galaxy Ethereum ETF on the Cboe BZX Exchange.

This delay is part of the commission’s review process for various crypto investment vehicles, as it has yet to approve an ETF directly exposed to Bitcoin or other cryptocurrencies. The proposal, published for public comment on November 8, 2023, obligates the SEC to make a decision within 45 days. The extension provides ample time for thorough consideration of public comments, ensuring a meticulous evaluation of the proposed rule change.

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