Invesco Joins ETF Hopefuls After Submitting Two Crypto Applications

Invesco, a US investment firm with $1.3 trillion in assets under its management, has filed two applications for crypto-specific exchange-traded funds (ETFs). The two apps join more than a dozen hopefuls looking to launch cryptocurrency ETFs. The Securities and Exchange Commission (SEC) has never approved a crypto ETF application since the Winklevoss twins first filed their Winklevoss Bitcoin shares in 2013. This application was rejected in 2018. How Fed's ETF Buying Strategy Helps MicroStrategy Listing of Crypto ETFs Filed with the SEC . Source: Bloomberg Intelligence. Unlike proposed ETFs that have cryptocurrencies on their balance sheet, Invesco's ETFs provide investors with simultaneous cryptocurrency exposure through exposure to equities surrounding the crypto industry, such as cryptocurrency mining companies and companies that own Bitcoin and other crypto assets. . The thinking is that the SEC will be more lenient on this diverse allocation given the bearish stances in the asset class. In May, the SEC's Department of Investment Management issued a statement saying that investors should consider Bitcoin's volatility, as well as the "lack of regulation in the underlying Bitcoin market and the potential for fraud or manipulation." Bitwise, a cryptocurrency investment firm, has become the first crypto ETF provider to receive approval. The Bitwise Crypto Industry Innovators ETF consists of a number of crypto companies and companies with cryptocurrencies on their balance sheets. According to Invesco's filing, 85% of both ETFs will invest in securities of companies that mine cryptocurrencies, crypto technologies, and companies that have cryptocurrencies on their balance sheets, such as Square, Tesla, and Microstrategy. Crypto technologies include companies that facilitate trade, custodian services, and even companies that provide specialized semiconductors to mining machines.

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