Invesco Ltd., one of the largest ETF issuers in the United States, has announced partnering with Michael Novogratz's Galaxy Digital Holdings merchant banking institution that works in the digital assets and blockchain industry.
The fourth-largest ETF issuer stated that the company will be developing a partnership with Novogratz's Galaxy Digital Holdings to create U.S.-listed physically backed digital assets funds.
The venture will be used by Invesco to create market-leading crypto ETFs which have not yet received a regulatory pass and review from the SEC. Invesco has already filed an application to launch a digital assets fund, which already garnered major demand from both retail and institutional investors.
The cryptocurrency industry is yet to receive significant funding from products like ETFs and has good potential for growth, said the company's ETF business lead, John Hoffman. He also stated that the company spent years looking at the development of the blockchain industry. He compared crypto with the early days of ETF development back in the late 1990s, and they are excited to focus on the cryptocurrency market.
The Securities and Exchange Commission has been cautious about the cryptocurrency industry and the ETFs tied to it. But at the same time, the regulator's leader, Gary Gensler, has signaled that the SEC is open to a discussion about ETFs based on crypto futures. Companies like Invesco and ProShare have already filed applications for related funds.
The company is aiming at allowing customers to invest in digital assets as a technology and not as a speculative tool. Hoffman thinks that the crypto ETF market will follow the steps of commodity-tracking funds since they have numerous similarities between them.