Atlanta-based funding firm Invesco is planning to launch a brand new Bitcoin (BTC) exchange-traded fund, or ETF, that won’t spend money on BTC straight.
On Wednesday, Invesco filed an software with the USA Securities and Alternate Fee (SEC) to listing a brand new funding product known as Bitcoin Technique ETF.
The Invesco Bitcoin Technique ETF seeks to attain its funding goal by investing “all or considerably all of its belongings” in Bitcoin futures and exchange-traded merchandise (ETPs), in addition to Bitcoin-linked personal funding trusts just like the Grayscale Bitcoin Belief. The fund may “at occasions” spend money on Bitcoin ETFs listed exterior of the USA, the submitting notes.
The fund additionally plans to speculate its remaining belongings straight 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 response to the submitting, the brand new fund is “non-diversified,” that means that it’s going to not be required to fulfill sure diversification necessities below the Funding Firm Act of 1940.
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 trade. As of early July 2021, the fund has amassed over $1 billion in belongings since its inception.
Invesco’s newest Bitcoin ETF joins a protracted listing of cryptocurrency ETFs ready for the SEC’s approval, with the authority not having authorised 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 number of Bitcoin ETFs already trading in international locations like Canada.