Two companies have sought the permission of the Securities and Exchange Commission to sell exchange-traded funds(ETF) in connection to Bitcoin and Decentralized finance (DeFi).
The two companies are Invesco and Amplify, which are to sell the ETFs. Invesco will collaborate with New York’s Galaxy Digital Funds to file and register a trust with physically protected private keys, Invesco Galaxy Bitcoin ETF. Invesco Galaxy Bitcoin ETF will transition to security and get listed on exchanges in the United States if approved by the SEC. The trust has different strategies to protect Bitcoin private keys, such as various physical barriers to entry, electronic surveillance, and continuously roving patrols.
As for Amplify, they will be able to offer DeFi-centric open-end ETF funds. Once Amplify is approved by the SEC, it will allow its FORM N-1A filing to enable American investors to get unlimited new shares from the company.
Galaxy is currently applying for Bitcoin ETF registration for the second time since April 12. It is looking forward to the approval in October.
Gary Gensler, the SEC chairman, is encouraging crypto companies to register with the SEC. This was from a statement he made on September 14 asking them to seek their legal status with authority.
This is not the first time Gensler is pushing for this, as back in August, Gensler was advocating for an active crypto regulatory regime to protect crypto investors. Investors will be protected whether they are just in crypto finance or deal with issuing, trading, or lending. In recent days, he made a demand for a more clear stablecoin ecosystem.