October 16, 2021

A Crypto Investor

Just another Crypto Guys Blog

SEC registrants seek DeFi and physically backed Bitcoin ETF approval

Crypto companies from the United States filed two registration statements with the Securities and Exchange Commission, seeking permission to sell exchange-traded funds (ETF) in relation to Bitcoin (BTC) and decentralized finance (DeFi).

Atlanta-based investment company Invesco joined New York’s Galaxy Digital Funds to file and register Invesco Galaxy Bitcoin ETF, a trust with physically protected private keys. Illinois-based Amplify ETFs filed the second registration to add DeFi-centric open-end EFT funds offering to the Amplify ETF Trust.

If approved by the SEC, the Invesco Galaxy Bitcoin ETF will be registered as a securities offering with the ability to get listed on traditional national exchanges in the United States. According to the filing, the trust will use “robust physical barriers to entry, electronic surveillance and continuously roving patrols” to protect Bitcoin private keys.

On the other hand, the SEC’s approval for Amplify ETFs’ FORM N-1A filing will allow the company to issue unlimited new shares for American investors. However, this is the second time Galaxy has applied for a Bitcoin ETF registration since April 12, the approval of which is due in October.

Both Invesco and Amplify ETFs are yet to respond to Cointelegraph’s request for comment.

Related: SEC chair doubles down, tells crypto firms ‘come in and talk to us

SEC Chairman Gary Gensler has been pursuing crypto businesses to register with the authorities. In a statement from Sept. 14, Gensler asked crypto-related companies to “come in and talk to us,” citing probabilities of legal status on a case-to-case basis.

In August, Gensler shared similar sentiments, seeking a robust crypto regulatory regime to improve investor protection across “crypto finance, issuance, trading, or lending.” More recently, he demanded clarity for the stablecoin ecosystem. “The poker chip is these stablecoins at the casino gaming tables,” he said.