Asset managers blame SEC rules for decision to pull bitcoin ETFs

Asset managers blame SEC rules for decision to pull bitcoin ETFs

Invesco’s surprise decision to abort the launch of a bitcoin futures exchange traded fund in the US was partly prompted by its view that regulatory constraints would make it too costly for investors, the manager has revealed.

The $1.6tn asset manager last month shelved plans to launch a Bitcoin Strategy ETF just hours before the fund was due to list in New York.

The Invesco vehicle would have been the second such ETF to launch, just 24 hours after the ProShares Bitcoin Strategy ETF (BITO), which staged the second-strongest debut in history with almost $1bn of shares changing hands on its first day of trading. BITO currently has assets of $1.3bn.

Yet, despite the time, effort and money put into producing the 69,000-word, 75-page filing, Invesco told the Securities and Exchange Commission it no longer wished to pursue the ETF.

The Atlanta-based company said that concerns over cost and suitability for investors were a major factor behind its decision, particularly with the futures curve for bitcoin generally sloping upwards, known as contango, which means a fund typically incurs a loss when it rolls a front-month contract into a longer-dated one.

One roadblock was that it became evident the SEC was only contemplating permitting ETFs with