Asset management giant Invesco has partnered with Galaxy Digital, led by Mike Novogratz, to apply for an Ethereum (ETH) spot exchange-traded fund (ETF). This follows their joint application for a Bitcoin (BTC) product in June. The Invesco Galaxy Ethereum ETF will track the performance of the spot price of ether by holding units of the cryptocurrency and will have a separate custodian. Galaxy Digital will serve as the execution agent, responsible for selling ETH to cover the Trust’s expenses. This is the fourth Ethereum spot ETF application submitted to the Securities and Exchange Commission (SEC) recently, with other filings from companies like Ark Invest/21Shares, VanEck, and Hashdex.
With the imminent launch of an Ethereum futures product next week, industry experts believe that a spot ETF is the next logical step for crypto investment in the US. VanEck and Valkyrie have already gained approval this week, and additional companies such as Bitwise, ProShares, Hashdex, and Volatility Shares could join them in launching ETFs as early as October 2. While futures ETFs have received regulatory approval, spot crypto ETFs are still unavailable to US investors. Invesco and Galaxy’s Bitcoin spot ETF application, along with others from BlackRock, Bitwise, and Valkyrie, has faced delays from the SEC. However, after losing a lawsuit to Grayscale, pressure is mounting on the SEC to reconsider its approach to spot ETFs, especially in light of its openness to futures ETFs.
Bitwise has filed an amendment to its Bitcoin ETF application to account for potential future rejections by the SEC, despite its recent court victory. This indicates the ongoing efforts of companies in the crypto industry to make spot ETFs accessible to US investors.