Invesco Files for a Bitcoin Strategy ETF

Investment management company Invesco filed with the SEC on Thursday to launch the Invesco Bitcoin Strategy Fund. 

According to the filing, the fund will be actively managed and seeks to invest all or most of its assets in Bitcoin futures contracts. The fund could at times invest in ETPs that provide exposure to bitcoin, or private trusts that hold Bitcoin directly, although “to a lesser extent.”

Remaining assets will be invested directly in “cash, cash-like instruments or high quality securities,” referred to as “Collateral” in the filing. 

The application states that the fund is “non-diversified” and is not required to meet diversification requirements under the Investment Company Act of 1940. 

The fund will use a wholly owned Cayman Islands subsidiary to invest in Bitcoin futures contracts. The fund will invest approximately 25% of its assets in the subsidiary. 

The subsidiary will have the same investment advisor and objective, the key difference being that the subsidiary will have the ability to invest in Bitcoin futures without a limit.  

The fund will have a team of portfolio managers and investment strategists. Peter Hubbard is listed as the Director of Portfolio Management and Vice President of the Trust, David Hemming as the Senior Portfolio Manager, and Theodore Samulowitz as the Portfolio manager. 

The filing clearly states that the fund will not directly invest in Bitcoin, nor hold it directly. 

No management fee or ticker was listed. 

Invesco filed with the SEC earlier this summer to launch two “crypto-lite” ETFs, one focused on the crypto economy and the other on blockchain. 

SEC chair Gary Gensler recently signaled in remarks before the Aspen Securities Forum that he was looking forward to the SEC staff’s review of ETFs providing exposure to crypto assets – particularly Bitcoin futures traded on the Chicago Mercantile Exchange (CME). 

Gensler said that under the Investment Company Act of 1940, as well as other securities laws, ETFs provide significant investor protections. Gensler cited investor protection as a major concern when it comes to the largely unregulated crypto market. 

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