For some time, a number of major players in the United States have been trying to acquire a bitcoin (BTC) exchange traded fund (ETF) to get off the ground. Among other Grayscale, Galaxy Digital and Fidelity are currently hard at work getting approval for such a bitcoin ETF.
Such bitcoin ETFs can ensure that many new investors are attracted. There are currently more than 13 applications for ETFs with the US Securities and Exchange Commission (SEC). However, this body has not yet approved any application.
Invesco applies for bitcoin ETF
The list of applications to the US SEC only seems to grow. This time it’s the turn of the giant investment firm Invesco. Invesco is a company with over $1.5 trillion at assets under management (AUM) and offices around the world. So a true giant.
Invesco is no newcomer when it comes to ETFs. The company currently manages 233 ETFs in the United States. On Thursday, Invesco filed a filing with the SEC to now also add a bitcoin ETF to their portfolio.
No direct exposure to bitcoin
Invesco late in the application clearly know that their ETF will not expose investors directly to bitcoin. Instead, the ETF will consist of a number of bitcoin-related products.
Some examples of such products include Bitcoin Futures, the Grayscale Bitcoin Trust Fund, a number of Canadian bitcoin ETFs, and perhaps even a company like Microstrategy.
“The fund will not invest directly in bitcoin. The fund can exchange-traded products and private funds that over-the-counter are traded with direct exposure to bitcoin investing (collectively de Bitcoin-related assets).”
It is now up to the US SEC to make decisions. While other countries such as Canada have already approved crypto-related ETFs, the United States seems very reluctant.
At the moment there is a considerable pile of applications with the body and sooner or later a decision will have to be made about this. Only time will tell what the SEC will decide.
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