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Invesco pulled its Bitcoin Futures ETF filing with the SEC, and here's why

Invesco pulled its Bitcoin Futures ETF filing with the SEC, and here's why


Seeking Alpha
2021-11-22 17:54:03
Invesco pulled its Bitcoin Futures ETF filing with the SEC, and here's why

Invesco (NYSE:IVZ) executives decided to pull their proposed Bitcoin Futures ETF filing from regulators and Anna Paglia, global head of ETFs and indexed strategies at Invesco explained why. In an interview with the Financial Times, Paglia states: "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." Paglia continued with: “We ran a number of simulations and the cost of rolling the futures, produced a drag of 60-80 basis points [a month}... We are talking about some big numbers, 5-10 per cent annualised. It was not going to be plain vanilla replication of the [bitcoin] index without significant tracking error.” Invesco believes that the best way to represent a Bitcoin ETF wrapper includes a grouping of not only futures contracts but also swaps, physical bitcoin, ETFs, and private funds.

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