Invesco files with SEC for Bitcoin ETF without direct BTC exposure

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Atlanta-based funding firm Invesco is planning to launch a brand new Bitcoin (BTC) exchange-traded fund, or ETF, that won’t put money into BTC instantly.

On Wednesday, Invesco filed an utility with the USA Securities and Alternate Fee, or SEC, to listing a brand new funding product known as Bitcoin Technique ETF.

The Invesco Bitcoin Technique ETF seeks to realize its funding goal by investing “all or considerably all of its belongings” in Bitcoin futures in addition to exchange-traded merchandise, or ETPs, and Bitcoin-linked personal funding trusts just like the Grayscale Bitcoin Belief. The fund might also “at instances” put money into Bitcoin ETFs listed outdoors of the USA, the submitting notes.

The fund additionally plans to speculate its remaining belongings instantly in money, cash-like devices or high-quality securities as a part of collateral investments. The collateral might include high-quality securities together with U.S. authorities securities like payments, notes and bonds, in addition to cash market funds and company debt securities. “The collateral is designed to supply liquidity, function margin or in any other case collateralize the subsidiary’s investments in Bitcoin futures,” Invesco famous.

In line with the submitting, the brand new fund is “non-diversified,” which means that it’ll not be required to satisfy sure diversification necessities underneath the Funding Firm Act of 1940.

Associated: Bitcoin ETF not happening in 2021, says Wilshire Phoenix co-founder

As beforehand reported by Cointelegraph, Invesco has been actively concerned within the adoption of crypto and blockchain-related ETFs lately. In March 2019, the corporate launched a blockchain ETF on the London Inventory Alternate, initially focusing on 48 corporations concerned within the blockchain know-how business. As of early July 2021, the fund has amassed over $1 billion in belongings since inception.

Invesco’s newest Bitcoin ETF joins a protracted listing of cryptocurrency ETFs ready for the SEC’s approval, with the authority not having accepted a single Bitcoin ETF to date. The authority has continued delaying decisions on a number of crypto ETFs this yr after rejecting a collection of Bitcoin ETFs beforehand. Different jurisdictions have seen extra success in adopting crypto ETFs, with a variety of Bitcoin ETFs already trading in countries like Canada.

 

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