Invesco files with SEC for Bitcoin ETF without direct BTC exposure

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 instantly.

On Wednesday, Invesco filed an utility with america Securities and Change Fee, or SEC, to record a brand new funding product referred to 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 non-public funding trusts just like the Grayscale Bitcoin Belief. The fund can also “at instances” spend money on Bitcoin ETFs listed outdoors of america, the submitting notes.

The fund additionally plans to take a position 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.

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

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As beforehand reported by Cointelegraph, Invesco has been actively concerned within the adoption of crypto and blockchain-related ETFs in recent times. In March 2019, the corporate launched a blockchain ETF on the London Inventory Change, initially concentrating on 48 firms concerned within the blockchain expertise trade. As of early July 2021, the fund has amassed over $1 billion in belongings since inception.

Invesco’s newest Bitcoin ETF joins an extended record of cryptocurrency ETFs ready for the SEC’s approval, with the authority not having authorised a single Bitcoin ETF up to now. The authority has continued delaying choices 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 quite a few Bitcoin ETFs already buying and selling in international locations like Canada.