The Invesco Bitcoin Strategy ETF may “at times” invest in Bitcoin ETFs listed outside of the United States.
Atlanta-based investment company Invesco is planning to launch a new Bitcoin (BTC) exchange-traded fund, or ETF, that will not invest in BTC directly.
On Wednesday, Invesco filed
an application with the United States Securities and Exchange
Commission, or SEC, to list a new investment product called Bitcoin
Strategy ETF.
The Invesco Bitcoin Strategy ETF seeks to achieve
its investment objective by investing “all or substantially all of its
assets” in Bitcoin futures as well as exchange-traded products, or ETPs,
and Bitcoin-linked private investment trusts like the Grayscale Bitcoin
Trust. The fund may also “at times” invest in Bitcoin ETFs listed
outside of the United States, the filing notes.
The fund also
plans to invest its remaining assets directly in cash, cash-like
instruments or high-quality securities as part of collateral
investments. The collateral may consist of high-quality securities
including U.S. government securities like bills, notes and bonds, as
well as money market funds and corporate debt securities. “The
collateral is designed to provide liquidity, serve as margin or
otherwise collateralize the subsidiary’s investments in Bitcoin
futures,” Invesco noted.
According to the filing, the new fund is
“non-diversified,” meaning that it will not be required to meet certain
diversification requirements under the Investment Company Act of 1940.
Related: Bitcoin ETF not happening in 2021, says Wilshire Phoenix co-founder
As
previously reported by Cointelegraph, Invesco has been actively
involved in the adoption of crypto and blockchain-related ETFs in recent
years. In March 2019, the company launched a blockchain ETF
on the London Stock Exchange, initially targeting 48 companies involved
in the blockchain technology industry. As of early July 2021, the fund
has amassed over $1 billion in assets since inception.
Invesco’s
latest Bitcoin ETF joins a long list of cryptocurrency ETFs waiting for
the SEC’s approval, with the authority not having approved a single
Bitcoin ETF so far. The authority has continued delaying decisions
on multiple crypto ETFs this year after rejecting a series of Bitcoin
ETFs previously. Other jurisdictions have seen more success in adopting
crypto ETFs, with a number of Bitcoin ETFs already trading in countries like Canada.
source link : https://cointelegraph.com/news/invesco-files-with-sec-for-bitcoin-etf-without-direct-btc-exposure
