Invesco management firm considers launching a crypto-based ETF with its $1.5 trillion in AUM after it filed documents seeking approval to launch the ETFs so let’s find out more in our latest cryptocurrency news today.
The Invesco management firm is a US investment management company that has more than $1 trillion in assets under management and as of late, it joined the growing list of companies that were looking to launch crypto-based exchange-traded funds. In an SEC filing, Invesco revealed that it was planning to launch two cryptos ETFs including the Invesco Galaxy Crypto Economy ETF and Invesco Galaxy Blockchain Economy ETF. As per the document:
“The Fund will allocate its assets in the same proportion as the Underlying Index (i.e., under normal circumstances, the Fund will invest approximately 85% of its assets in securities of the Equity Component, 10% in the Futures Component and 5% in the ETP and Trust Component).”
While most applications seek to invest directly in crypto, Invesco doesn’t seek a direct crypto investment:
“The Fund will not invest directly in cryptocurrencies or crypto assets directly and will not invest in initial coin offerings. The Fund may, however, have indirect exposure to crypto assets by virtue of its investments in companies that use one or more crypto assets as part of their business activities or that hold crypto assets as proprietary investments.”
The US SEC hasn’t approved any Bitcoin ETF application and rejected several proposals in the past citing market manipulation and volatility. The American regulator postponed its decision on the VanEck BTC ETF until June and with other ETFs still pending for a SEC decision, Invesco’s plan not to invest directly in crypto could get the regulator to grant approval in a shorter timeframe.
Speaking on ETFs, we reported that One River Asset Management is the latest company to file an application for a carbon-neutral Bitcoin ETF and the former SEC Chairman will advise the company on the issuance of a Bitcoin exchange-traded fund. It looks like Clayton who rejected ETF applications in his time at the SEC, will help One River get approved. The ex-chairman of the US Securities and Exchange Commission who said that the US market doesn’t need a crypto exchange-traded fund is now helping a company to own its ETF.