Bitcoin

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.

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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.