Invesco Galaxy updates its Spot Bitcoin ETF S-1 after Ark Invest, analysts say more are to come

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• A day after Ark Invest did the same, Invest Galaxy updated its spot Bitcoin ETF S-1.
• It comes just weeks after the U.S. Securities and Exchange Commission sent emails to issuers with comments and questions about their S-1 forms
• ETF specialist Eric Balchunas assumes that the other potential issuers will also publish their updates soon.

Meanwhile, Balchunas and James Seyffart increased their approval odds for the Spot BTC ETF from 75% to 90% by January 10th.

Investment firm Invesco Galaxy has updated its spot Bitcoin exchange-traded fund (ETF), following Cathie Woods’ Ark Invest yesterday. It comes weeks after the US Securities and Exchange Commission (SEC) sent emails to potential issuers questioning their S-1 forms.

Also Read: Ark Invest Updates Spot Bitcoin ETF Prospectus; ETF specialist expects further delays

Invesco Galaxy updates spot BTC filing

Invesco Galaxy has updated its Spot BTC ETF S-1, likely to answer any questions the US Securities and Exchange Commission had following the company’s recent filing.

Invesco Galaxy has now updated its spot Bitcoin ETF S-1, following ARK in responding to SEC comments. I expect the rest will add their updates soon too. pic.twitter.com/JxzVMwLd4D

— Eric Balchunas (@EricBalchunas) October 13, 2023

With the expectation that the other issuers will also issue updates, they continue to wait for the US Securities and Exchange Commission (SEC) to make a decision on the long pile of filings on their desk. Nevertheless, everything indicates that there is a continuous dialogue between the Commission and the issuers and that hope remains alive.

In the case of Ark Invest, Bloomberg analysts and ETF specialists Balchunas and James Seyffart stated that the adjustments to the Spot BTC ETF S-1 form were not that large, but were comprehensive and included language, further context and additional risk closures. The changes included around five pages of text, suggesting the company received a lot of feedback.

It is likely that Invesco Galaxy received the same deal. While the exposure is still ongoing, Bloomberg analysts have increased their approval odds for the spot BTC ETF from late August to 90% by January 10th.

The 75 percent target was based on Grayscale’s victory after a long-running legal battle with the US Securities and Exchange Commission. This came as the US Court of Appeals for the DC Circuit ruled in favor of Grayscale and the regulator was sued for rejecting the application to convert the Grayscale Bitcoin Trust (GBTC) into an ETF.

Almost two months later, the SEC has not appealed the ruling, increasing the chances of the first spot Bitcoin ETF hitting the market.

The delayed decisions are due, among other things, to the fact that the financial regulator believes that such ETFs are vulnerable to price manipulation. This is due to the lack of a regulatory body similar to the Chicago Mercantile Exchange (CME) for futures Bitcoin ETFs.

Since the spot and futures markets for Bitcoin are closely linked, it stands to reason that manipulation in both markets impacts the price of Bitcoin futures. The rejection of the Grayscale proposal was arbitrary and capricious as the Commission failed to explain its different treatment of similar products.

However, this argument has been rejected by the court in the past, prompting the SEC to review Grayscale’s spot Bitcoin ETF application.

Since the SEC is not appealing the court’s decision, given the time that has elapsed, the dialogue between Grayscale and the SEC could begin in the week beginning October 16 and should begin next week, according to Seyffart.

1. The deal is done. I guess if that’s true. No en banc motion

2. No. I also don’t think they will appeal to the Supreme Court.

3. Dialogue between Grayscale and SEC should begin next week. Are you hoping to hear more information about next steps next week or the week after? https://t.co/2EayzqeKGq

— James Seyffart (@JSeyff) October 13, 2023

Contrary to expectations, the failure of the Commission’s appeal has not resulted in the apparent victory expected, with the price of Bitcoin (BTC) still remaining below the $28,000 mark.

Frequently asked questions about crypto ETFs

An exchange traded fund (ETF) is an investment instrument or index that tracks the price of an underlying asset. ETFs can track not just a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks the price of Bitcoin. ETF is a tool that allows investors to gain exposure to a specific asset.

Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still awaiting regulatory approval. The SEC says the cryptocurrency industry is new and vulnerable to manipulation, which is why it has delayed crypto-related futures ETFs in recent years.

The Bitcoin spot ETF has been approved outside the US, but the SEC has yet to approve one in the country. Interest in crypto ETFs has reignited after BlackRock filed for a Bitcoin spot ETF on June 15. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – won in court, forcing the US regulator to re-examine its proposal. The SEC’s loss in this lawsuit has raised hopes that a Bitcoin spot ETF could be approved by the end of the year.

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