After dropping a filing for a Bitcoin (BTC) futures substitution-traded fund (ETF) in October, Usa $ane.6-trillion asset manager Invesco has disclosed the reasons backside its decision.

Anna Paglia, global head of ETFs and indexed strategies at Invesco, said that the biggest reason for dropping the filing was that the U.S. Securities and Exchange Committee only approved Bitcoin ETFs with 100% exposure to Bitcoin futures.

The Invesco Bitcoin Strategy ETF was designed to ideally exist a mix of futures swaps, concrete Bitcoin and private funds in the Bitcoin industry, Paglia said in a Sunday interview with the Financial Times. Such a composition would help protect investors in the issue of a liquidity crisis, she stated, calculation:

"We idea that CME futures were going to exist a very effective element of the portfolio. We never thought they would be effective when they would exist 100% of the product."

Paglia said that Invesco realized that there are better ways of providing this particular exposure instead of giving investors something they didn't need. She also cited concerns related to capacity and liquidity in the futures marketplace.

Invesco originally filed for its Invesco Bitcoin Strategy ETF in early August, planning to invest its assets in Bitcoin futures and exchange-traded products, too as Bitcoin-linked individual investment trusts such as the Grayscale Bitcoin Trust. According to Paglia, Invesco filed for the ETF within 24 hours of SEC Chair Gary Gensler hinting the regulator might be open up to blessing Bitcoin futures ETFs traded on the Chicago Mercantile Commutation.

"Information technology was easier to say 'yes' and encounter how it goes than 'no' and explain the decision. We had to make this hard choice and ain the decision. I would do the aforementioned again," Paglia noted.

Paglia'south remarks come shortly after Bitwise Asset Management became another firm to drop its Bitcoin ETF awarding in early November despite the launch of Bitcoin futures ETFs such as the ProShares Bitcoin Strategy ETF and the Valkyrie Bitcoin Strategy ETF.

Related: SEC rejects VanEck's spot Bitcoin ETF every bit BTC price falls below $63K

Bitwise master investment officer Matt Hougan noted that the Bitcoin futures ETF contango — a state of affairs where the futures price is higher than the spot one — could be costly for investors.

Hougan added that the company will go on its efforts to launch a spot Bitcoin ETF in the U.S. as no such products have been launched since Gemini crypto exchange founders Cameron and Tyler Winklevoss first filed for such a product back in 2022.