$1.5 Trillion Investment Fund To Launch Two Crypto ETFs

June 11, 2021, 10:30 AM AEST - 1 month ago

Invesco is the latest investment management firm to apply for crypto-based exchange traded funds (ETFs), adding to the pile of ETFs the Securities and Exchange Commission (SEC) still needs to decide on.

According to the filing sent to the SEC, Invesco – which holds US$1.5 trillion in assets – has applied for two ETFs that are crypto-linked equities like Square and Microstrategy. These are the Galaxy Blockchain Economy and Invesco Galaxy Crypto Economy ETFs, where nearly 85 percent of the funds will sit. The rest of the portfolio will be put in other trusts and funds that hold cryptocurrencies.

ETF Applications Queueing Up

A queue of companies waiting to hear about their Bitcoin (BTC) ETFs has already formed. There are at least 12 issuers, including Fidelity Investments, Grayscale Investments and WisdomTree Investments, which are currently chasing Bitcoin ETFs, and the SEC has acknowledged at least six applications. This means it has a limited amount of time to make decisions about approval.

Some of the current Bitcoin ETFs [Bloomberg]

The logic is that since the SEC doesn’t seem to have a favourable view of Bitcoin, Invesco’s funds may be able to sidestep the SEC’s Bitcoin ETF blockades by only investing indirectly in cryptocurrencies.

Other companies have tried a similar route, such as an application for the Volt Bitcoin Revolution ETF filed recently that would also target companies exposed to Bitcoin. Or Bitwise Crypto Industry Innovators ETF, which tracks companies such as crypto miners and payment firms, launched in May.

Earlier in 2021 we also saw the ASX set to launch a Crypto ETF later this year due to high demand in Australia.

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