Examine files with the SEC for a Bitcoin ETF with no direct exposure to BTC

Atlanta-based funding agency Invesco plans to launch a new Bitcoin (BTC) exchange-traded fund, or ETF, that won’t make investments instantly in BTC.

On Wednesday, Invesco filed with the U.S. Securities and Exchange Commission (SEC) to checklist a new funding product known as the Bitcoin Strategy ETF.

The Invesco Bitcoin Strategy ETF seeks to obtain its funding targets by investing “all or substantially all of its assets” in Bitcoin futures contracts in addition to exchange-traded merchandise or Bitcoin-linked ETPs and personal fairness funds corresponding to Grayscale Bitcoin Trust. The fund may additionally “occasionally” spend money on Bitcoin ETFs which are listed outdoors of the United States, the deposit notes learn.

The Fund additionally plans to make investments its remaining property instantly in money, money equivalents or top quality securities as a part of its secured investments. Collateral can embrace top quality securities, together with US Treasuries corresponding to payments of trade, bonds, and bonds, in addition to cash market funds and company bonds. “Collateral is intended to provide liquidity and serve as a margin or security for subsidiary investments in Bitcoin futures,” famous Invesco.

According to the submitting, the new fund is “nondiversified,” which suggests it doesn’t want to meet sure diversification necessities beneath the Investment Companies Act of 1940.

Related: Bitcoin ETF will not occur in 2021, says Wilshire Phoenix co-founder

As beforehand reported by Cointelegraph, Invesco has been actively concerned in the introduction of crypto and blockchain-related ETFs lately. In March 2019, the firm launched a blockchain ETF on the London Stock Exchange, initially concentrating on 48 firms in the blockchain expertise business. By early July 2021, the fund has amassed over $ 1 billion in property since inception.

Invesco’s newest Bitcoin ETF joins a lengthy checklist of crypto ETFs awaiting SEC approval, with the company not but approving a single Bitcoin ETF. The authorities has continued to delay selections on a number of crypto ETFs this 12 months after rejecting an earlier batch of Bitcoin ETFs. Other jurisdictions have been extra profitable in adopting crypto ETFs, with some Bitcoin ETFs already trading in nations like Canada.