Invesco, a US asset management company with a global asset management value of US$1.5 trillion, officially launched the BTC spot exchange trading product (ETP) backed by physical bitcoin on the electronic trading platform Xetra of the Deutsche Börse. ), the transaction code is BTIC.

According to the Xetra press release, the BTIC asset class belongs to Index Investment Securities (ETN), which was launched in cooperation with the cryptocurrency index provider CoinShares. BTIC will track the hourly reference interest rate index of CoinShares Bitcoin, with a total expense ratio (TER) of 0.99%. Zodia Custody, a digital asset custodian registered with the British Financial Conduct Authority (FCA), will provide custodial services.

Xetra pointed out: The ETN supported by Bitcoin has entered the regulated market of the Frankfurt Stock Exchange and is cleared through Eurex Clearing. Through the central clearing, investors’ transaction settlement risks will be significantly reduced.

Prefer Bitcoin spot over futures

This product is a new move after Invesco withdrew its Bitcoin futures ETF application in October. According to reports, Invesco executives recently revealed that the biggest reason for the company’s withdrawal of the application was because the US Securities and Exchange Commission (SEC) only approved Bitcoin ETFs that are 100% exposed to Bitcoin futures.

In an interview with “ETF Stream” on the 29th, Gary Buxton, Head of ETF and Index Strategy for Invesco Europe, Middle East and Africa, commented on why the company decided to launch Bitcoin spot ETP in Europe instead of a product based on Bitcoin futures.

“Physical Bitcoin is a more observable market. One of our concerns is the depth of liquidity of synthetic products, which may affect valuations over time. This is something we are not entirely satisfied with.”

He also revealed that Invesco has been working since mid-2018, trying to build a product that is as close as possible to traditional ETFs from an institutional point of view.

“In the past few years, we have been driven by institutional customers and have to consider how to enter this space well. The advantage of ETP is as a tool for easy access to Bitcoin.”

At the same time, in the United States, Invesco still hopes that the SEC will approve their Bitcoin spot ETF application jointly submitted with Galaxy Digital in September. However, due to the SEC’s cautious reservations about the Bitcoin spot ETF, and even recently rejected the VanEck Bitcoin spot ETF application, it seems reasonable for Invesco to choose to list the Bitcoin ETP first in Europe this time.

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