Invesco redoubles its efforts, to become a pioneer in the as-yet-untapped world of cryptocurrency exchange-traded funds.
4th largest American issuer ETF stated on wednesday, that he is partnering with Michael Novogratz's company Galaxy Digital Holdings to develop a 'comprehensive suite of digital asset funds, listed in the US and backed by physical assets ''.
This reflects Invesco's commitment to being at the forefront of crypto ETFs., who have not yet received SEC approval. Invesco is one of at least a dozen issuers, who applied for the launch of such funds, as demand from investors – as private, and institutional – growing. The crypto industry resembles the birth of ETF business and presents a good opportunity for growth, says John Hoffman of Invesco, Head of ETF Division in the USA.
“We have spent a lot of effort over the years, studying the development of blockchain as a technology and cryptocurrency ", – said Hoffman in an interview with Bloomberg. "For those, who has been in the ETF business for a very long time, it's incredibly similar to the early days of ETFs in the late 1990s – early 2000s. And therefore, we are very pleased to focus on this market., because the growth prospects are quite big ".
SEC takes a cautious stance towards cryptocurrencies, although chairman Gary Gensler has signaled ETF openness, based on crypto futures. Invesco and ProShares are among the issuers, who applied for the creation of such funds.
According to Hoffman, and for ETF, and for the digital asset industry it's all about technology. "Investment in digital assets – it is an investment in technology ".
If the SEC approves such a structure, Hoffman expects, that the crypto ETF market can develop similarly to commodity funds. "We see similar opportunities as this market expands and this asset class opens up.", – he said.
