thecoinrepublic.com
- Portfolio management company trying to step out in Cryptocurrency
- Regulators are delaying the approval
- Atlanta based Invesco firm has $1.5 trillion in assets
Invesco plans two cryptocurrency-focused exchange-traded funds (ETFs), making it the industry’s newest entrant, while the US Securities and Exchange Commission’s approval of a real bitcoin (BTC, +13.85% ) ETF remains elusive. According to a filing with the SEC, roughly 85 percent of the Invesco Galaxy Blockchain Economy ETF and the Invesco Galaxy Crypto Economy ETF will be in crypto-linked equities. The remainder of the portfolio will be invested in cryptocurrency trusts and funds.
The monitoring of the two ETF’s
The Alerian Galaxy Global Cryptocurrency-Focused Blockchain Index will be tracked by the Invesco Galaxy Crypto Economy ETF, while the Alerian Galaxy Global Blockchain Index will be tracked by the Galaxy Blockchain ETF.
While companies wait for the SEC to approve an actual bitcoin ETF, the Invesco ETFs are just the latest ETFs set up by the financial world to gain exposure to the world of cryptocurrencies. Until recently, this was thought to be a possibility this year, but given recent rhetoric from Washington, D.C., it has become less so.
The involvement of the SEC in the approval of Invesco
The SEC has postponed a decision on the slew of Bitcoin ETF applications, though the chances of approval this year have dwindled following new Chairman Gary Gensler’s skeptical comments last month. According to Bloomberg Intelligence, at least 12 issuers are currently pursuing a Bitcoin ETF, including Fidelity Investments, Grayscale Investments, and WisdomTree Investments, and the SEC has acknowledged at least six applications. That means it only has a limited time to approve or reject the proposals. This week, Volt filed an application for the Volt Bitcoin Revolution ETF, which would target companies that are exposed to Bitcoin.
Volt Bitcoin Revolution ETF is the newest SEC filed ETF cryptograph
Volt Equity has submitted preliminary prospectus paperwork to the Securities and Exchange Commission in order to launch the Volt Bitcoin Revolution ETF. The Volt Bitcoin Revolution ETF will also be listed and traded on the New York Stock Exchange under the ticker BTCR. From an investment standpoint, the actively managed exchange-traded fund seeks to invest in both domestic and international companies that have exposure to bitcoin. The advisor also employs an option overlay strategy when it comes to the fund’s equity investments.
The ETF defines companies with bitcoin exposure using three different criteria, according to the prospectus. These are the requirements:
- Hold bitcoin on their balance sheet, whether for treasury management or otherwise
- are actively using, investing in, developing, mining, or have products that are poised to benefit from bitcoin and bitcoin’s blockchain technology and/or the potential for increased efficiency that it provides to various business processes
- develop, produce, or provide technology, cloud services, or equipment that facilitates or supports the creation or transmission of bitcoin or blockchain technology, or that otherwise benefits from or relies on bitcoin, blockchain technology, transactional innovations, or cryptocurrency.
Invesco’s investing in Cryptocurrency
By investing indirectly in cryptocurrencies, Invesco’s funds may be able to get around the SEC’s ban on bitcoin ETFs. With $1.5 trillion in assets, Atlanta-based Invesco is unquestionably an investment management firm.