Invesco ditches its plan to launch a US bitcoin futures ETF any time soon, just before the first-ever makes its debut

• Invesco abandoned plans to launch a US bitcoin futures ETF, just before the first-ever such fund begins trading.
• The firm filed to delay the listing Monday, and said it will focus on a physically-backed bitcoin ETF.
• A first-mover in the bitcoin futures ETF space is in a "winner take all" position, Fundstrat's Tom Lee said.

Investment firm Invesco has abandoned its plan to launch a US bitcoin futures exchange-traded fund any time soon, right before rival ProShares is expected to begin trading the first-ever such ETF.

The company has not formally withdrawn its ETF filing. But on Monday, it delayed the effective date of its Invesco Bitcoin Strategy ETF filing to October 29. Such moves are typically made when an issuer is yet to meet the required conditions to start trading.

"We have determined not to pursue the launch of a bitcoin futures ETF in the immediate near-term; however we will continue to work in partnership with Galaxy Digital to offer investors full shelf of products with exposure to this transformative asset class, including pursuing a physically backed, digital asset ETF," an Invesco spokesperson told Insider.

Invesco, one of the biggest ETF operators in the US, said in September that it would partner with Mike Novogratz's Galaxy Digital to launch crypto funds. It was seen as likely to launch the bitcoin futures ETF as soon as this week, given it was approaching the end of its filing period with the SEC.

Invesco plans to "focus on blockchain stock ETFs (and spot bitcoin ETF) instead," Eric Balchunas, a senior ETF analyst at Bloomberg, said in a tweet. "Not sure why, esp bc they were next in line."

One possible explanation is the fund that launches first has a significant first-mover advantage among people seeking a more regulated way to invest in bitcoin in their traditional brokerage and retirement accounts.

Fundstrat's Tom Lee said in a tweet that a futures-based bitcoin ETF is one instance where the first-mover is in a "winner take all" position.

A bitcoin futures ETF tracks the price of futures contracts - agreements to trade the asset at an agreed-upon price and date - rather than bitcoin itself. A physically-backed bitcoin ETF tracks the price of the cryptocurrency.

But SEC Chair Gary Gensler, who isn't in favor of pure bitcoin ETFs, has said that futures-based products carry higher investor protection.

The expected launch by ProShares of its bitcoin futures ETF on Tuesday is likely to usher in more listings from the backlog of similar applications awaiting SEC approval. A total of 19 other institutions are waiting to get the nod, including VanEck, and WisdomTree. Valkyrie's ETF is seen as making its debut on Wednesday.

Bitcoin surged near $63,000 for the first time since April as investors took heart from the ETF milestone. "If it can hold $60k and even push through the all-time high of $64,804 achieved in April this week, we may see a big Christmas present for bitcoin investors," said Tim Frost, CEO of fintech Yield App.

Invesco didn't immediately respond to Insider's request for comment.

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