American Independent Investment management company Invesco has filed with the U.S Securities and Exchange Commission (SEC) for a Bitcoin ETF. The ETF Manager filed for a Bitcoin Strategy ETF under Act 40 with the US SEC.
As per the filing, the Invesco Bitcoin Strategy ETF will not invest directly in crypto. Instead, it focuses its investment on the futures market.
The latter assets include Bitcoin electronic-traded notes and ETFs listed outside the U.S. and investment trusts such as Grayscale Bitcoin Trust. The Fund is “non-diversified” and therefore is not required to meet diversification requirements under the Investment Company Act of 1940.
The official filing read, “The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing all or substantially all of its assets in exchange-traded futures contracts on bitcoin and Collateral investments. The Fund may also invest to a lesser extent in exchange-traded products (“ETPs”) and private investment trusts traded over-the-counter that provide exposure to or directly hold bitcoin.”
The ETF would largely provide price exposure to bitcoin futures, Grayscale Bitcoin Trust, and several Canadian Bitcoin ETFs. The fund also plans to invest 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. It includes US government securities like bills, notes, and bonds, as well as money market funds and corporate debt securities.
The commission has been reluctant so far–citing Bitcoin’s volatility and the risk of market manipulation. It either declined or delayed any applications put on its table. One such Example is SkyBridge Capital, which filed for the Bitcoin ETF in May and for Ethereum ETF in July. Last month, the SEC delayed the decision on the Bitcoin ETF and pushed back the review period to August 25.
