Independent investment firm Invesco, which currently operates 233 ETFs in the United States, quietly requested a Bitcoin ETF on Thursday.
Filing a Bitcoin Strategy ETF falls under Law 40, a notable move that follows public recommendations from SEC Chairman Gary Gensler. Gensler spoke about potential avenues to a Bitcoin ETF earlier this week, saying at the time that he believed the law “offers significant protections to investors” and that it will be used to assess applicants.
Invesco is the first company to file after the preferences expressed by Gensler. Eric Balchunas, Senior ETF Analyst at Bloomberg Noted on Twitter that it was a “rare 6 a.m. deposit = rushed.” I won’t be surprised if we see 5-10 of these by Friday night.
It is indicated in bold on the file that “the Fund will not invest directly in bitcoin”. The fund’s strategy is to provide exposure to the price of bitcoin largely through exchange-traded futures and, to a lesser extent, exchange-traded products and private investment trusts that hold bitcoin.
The ETF would largely provide price exposure to bitcoin futures contracts, Grayscale Bitcoin Trust, as well as several Canadian Bitcoin ETFs.
Invesco’s deposit is just one of a series of funds seeking Bitcoin ETF approval in the United States. Notably, Goldman Sachs, Grayscale Bitcoin Trust and Viridi Funds have all recently deposited or started offering investment vehicles linked to Bitcoin ETFs.
A Bitcoin ETF would provide a massive boost to adoption, providing exposure to the Bitcoin price to millions of Americans.
If approved, it is proposed that the Invesco ETF will be effective 75 days after deposit.
Image via Invesco website