What Happened: American asset manager Invesco Ltd. IVZ has filed with the U.S. Securities and Exchange Commission for a new exchange-traded product titled “Invesco Bitcoin Strategy ETF.”
Despite the name of the fund, Invesco emphasized in the filing that its Bitcoin fund “will not invest directly in bitcoin.”
Instead, Invesco’s actively managed fund will invest all or substantially all of its assets in exchange-traded futures contracts on Bitcoin BTC/USD and Collateral investments.
These Bitcoin futures contracts will be those that are traded on commodity exchanges approved by the Commodity Futures Trading Commission (CFTC).
At the time of writing, only the Chicago Mercantile Exchange Group Inc (NASDAQ: CME) supports Bitcoin futures trading while being regulated by the CFTC.
Invesco said that its Fund would not invest in these products directly but rather through a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands.
“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…and open-ended private investment trusts that are linked to bitcoin, such as the Grayscale Bitcoin Trust,” stated the filing.
Incidentally, the Grayscale Bitcoin Trust (OTCMKTS: GBTC) itself will be converted into a Bitcoin ETF if all goes according to Grayscale Investment’s plan.
Yesterday, the company announced the hire of a new global head of ETFs and reiterated that it was 100% committed to converting its existing crypto investment products into exchange-traded ones.
Price Action: At press time, the leading digital asset Bitcoin was trading at $40,164, up 2.11% over the past 24-hours.
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