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 comes after their joint application for a Bitcoin (BTC) product in June. The Invesco Galaxy Ethereum ETF aims to reflect the performance of the spot price of ether by holding units of the cryptocurrency with a separate custodian. Galaxy Digital will act as the “execution agent” and sell ETH to cover the Trust’s expenses. This move follows similar recent filings for Ethereum spot ETFs from Ark Invest/21Shares, VanEck, and Hashdex.
The crypto industry believes that a spot ETF is the next logical step for crypto investment in the U.S., especially with Ethereum futures products likely to launch in the near future. VanEck and Valkyrie have already received approval this week, and other companies like Bitwise, ProShares, Hashdex, and Volatility Shares are expected to launch as early as October 2. While futures ETFs have received regulatory approval, spot crypto ETFs remain elusive for U.S. investors. Invesco and Galaxy’s Bitcoin spot ETF application, along with applications from BlackRock, Bitwise, and Valkyrie, have faced delays by the Securities and Exchange Commission (SEC). Pressure is mounting on the SEC after losing a lawsuit to Grayscale, where a federal court criticized the agency’s denial of spot ETF products.
