Invesco Files for Bitcoin ETF with US Regulators
United States-based investment management firm Invesco has become the latest company to file a Bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC).
Invesco Joins US Bitcoin ETF Queue
Invesco submitted its application to the SEC in a Form N-1A filing on Thursday (August 5, 2021). Meanwhile, the Bitcoin ETF was filed under the Investment Company Act of 1940.
According to the document, the Bitcoin ETF will not directly invest in bitcoin. Instead, an excerpt from the filing reads:
“While the Fund generally seeks to have full exposure to bitcoin futures, the Fund may at times invest in Bitcoin-Related Assets, which include ETPs (including exchange-traded notes (“ETNs”) and ETFs listed outside of the U.S.) and open-ended private investment trusts that are linked to bitcoin, such as the Grayscale Bitcoin Trust.”
Invesco’s application comes on the heels of comments made by SEC chairman Gary Gensler. The SEC chair, while speaking at the Aspen Security Forum on August 3, called for tougher regulatory policies for the cryptocurrency industry.
Gensler touched on different aspects of the industry, with one of them being Bitcoin ETFs. The chairman noted that he was expecting new ETF applications to be filed under the Investment Company Act of 1940, which among other things, ensures investor protection.
Meanwhile, the U.S. continues to lag behind other countries in approving a Bitcoin ETF. Back in June, Invesco filed for two crypto-based ETFs Invesco Galaxy Crypto Economy ETF and the Invesco Galaxy Blockchain Economy ETF.
Similar to its current application, the cryptocurrency ETFs will not directly invest in crypto assets and initial coin offerings (ICOs).
Several other companies have their applications pending before the U.S. SEC. Some of them include Global X, Ark Investment, VanEck, Galaxy Digital, among others. VanEck has had its application postponed twice by the SEC.
Interestingly, former SEC Chairman Jay Clayton, who did not approve any Bitcoin ETF during his tenure, is serving on the board of One River Asset Management. The company earlier filed for a carbon-neutral Bitcoin ETF.
However, the co-founder of Wilshire Phoenix William Cai said that a BTC ETF is not a priority for the American regulator. According to Cai, the US could wait till 2023 before getting an approved Bitcoin ETF.
