Invesco, an Atlanta-based investing firm, plans to launch a new Bitcoin (BTC) exchange-traded fund that will not invest in the crypto directly. The firm stated the fund may “at times” invest in Bitcoin ETFs listed outside of the United States.
Invesco filed an application with the Securities and Exchange Commission (SEC) on Wednesday to list the Bitcoin Strategy ETF, a new investment product.
The Invesco Bitcoin Strategy ETF invests “all or substantially all of its assets” in Bitcoin futures and exchange-traded products (ETPs), as well as Bitcoin-linked private investment trusts like the Grayscale Bitcoin Trust, to achieve its investment objective. According to the filing, the fund may “at times” invest in Bitcoin ETFs listed outside of the United States.
As part of collateral investments, the fund seeks to invest its remaining assets directly in cash, cash-like instruments, or high-quality securities.
High-quality securities, such as US government bills, notes, and bonds, as well as money market funds and corporate debt securities, may be used as collateral.
The collateral is intended to provide liquidity, serve as margin, or otherwise collateralize the subsidiary’s Bitcoin futures investments, according to Invesco.
According to the filing, the new fund is “non-diversified,” which means it will not be subject to the Investment Company Act of 1940’s diversification standards.
Invesco has been actively involved in the adoption of crypto and blockchain-related ETFs in recent years, as previously reported by Cointelegraph.
The business launched a blockchain ETF on the London Stock Exchange in March 2019, with an initial objective of 48 companies in the blockchain technology industry. Since its debut in early July 2021, the fund has amassed over $1 billion in assets.
Invesco’s latest Bitcoin ETF follows a lengthy list of cryptocurrency ETFs awaiting clearance from the Securities and Exchange Commission, which has yet to approve a single Bitcoin ETF.
After previously rejecting a number of Bitcoin ETFs, the authority has continued to postpone decisions on additional crypto ETFs this year. Other countries have had better success with crypto ETFs, with a number of Bitcoin ETFs now trading in places like Canada.
