The proposal for a Bitcoin ETF from Invesco is one of many to grace the desks of SEC members over the last year. According to their proposal, the investment objective is for the Invesco Bitcoin Strategy ETF (the “Fund”) to seek long-term capital appreciation.
Invesco lays out their strategy in the following way:
“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”.
It explicitly stated the Invesco Fund will not invest in Bitcoin directly. However, it leaves a window for investing in exchange-traded products (ETPs) and private investment trusts, which offer “exposure to or directly hold bitcoin”.
Many asset management firms, who are in the same position trying to create crypto ETFs, believe they are safer ways to enter the space. Due to the volatile nature of the crypto markets, new investors are often hesitant to join the action. However, these ETF proposals claim to be a good first step towards the crypto industry with less risk.
Crypto ETF Proposals On the Rise
Despite the SEC’s sluggish approval rate, crypto related ETFs keep piling in. Invesco follows other big names such as Goldman Sachs, who recently filed an ETF proposal with the Commission. The Goldman Sachs proposal isn’t bitcoin related, rather it monitors the DeFi space. Potentially a wise move as DeFi continues to take the spotlight in emerging tech circles.
While nothing has approval yet, Grayscale announced they’re still building up the team behind their crypto ETF proposal. If approved the firm would convert its $25 billion Grayscale Bitcoin Trust (GBTC) into an ETF.
In Europe however, yesterday news surfaced of a French fund successfully creating a Bitcoin ETF stock option. The ETF seemed to comply with EU-regulations and now stands an option for European businesses and investors.