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Invesco halts blockchain ETF launch in India

The regulatory uncertainty in India has affected the cryptocurrency space, and some companies are rethinking their investment strategies.

Leading fund manager Invesco announced yesterday that it had halted its planned launch of a blockchain exchange-traded fund (ETF) in India. The fund manager cited regulatory uncertainty as the reason why it is suspending its plans at the moment.

Cryptocurrency-focused ETFs are becoming very popular in some parts of the world, with the United States now with three Bitcoin futures ETFs. In Canada and Brazil, spot Bitcoin ETFs are already trading on the stock markets.

However, in India, the regulatory uncertainty is affecting how investment firms are approaching the cryptocurrency market. The Indian government is currently in talks with representatives from the crypto industry over the past few days regarding cryptocurrency regulation.

As a result of this, Invesco said it is important to understand all aspects before making long-term investment decisions. Invesco partnered with CoinShares to launch the vehicle in a few days. However, the launch is now on hold until the regulatory uncertainties are cleared.

Invesco remains one of the leading investment firms in the world but is yet to gain ground in the crypto space. The firm withdrew its Bitcoin futures ETF proposal with the United States Securities and Exchange Commission (SEC) a few days before the ProShares Bitcoin Strategy ETF went live.

Bitcoin and the broader cryptocurrency market have been in a bearish cycle since the start of the week. Bitcoin lost more than 10% of its value over the past week, and the leading cryptocurrency is currently trading just above the $60k level.

Despite the recent decline in prices, analysts are still optimistic that Bitcoin could make a move towards the $100k level before the end of the year. That would require Bitcoin to rally by more than 60% from its current position.

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