Asset Manager Invesco Files for 2 Crypto ETFs in the US
Godfrey Benjamin Oct 08, 2021 07:25
American independent investment management company Invesco Ltd has announced the launch of two Exchange Traded Funds in the U.S.
American independent investment management company Invesco Ltd has announced the launch of two Exchange Traded Funds in the U.S.
Dubbed as the Invesco Alerian Galaxy Crypto Economy ETF (SATO) and the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC), the firm said both products would offer exposure to companies as well as investment vehicles that are actively involved in digital currencies and blockchain around the world.
The SATO ETF will track the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity, Trusts & ETPs Index while also providing exposures to mining firms, crypto infrastructure tech providers, and even digital currency buyers. The BLKC ETF, on the other hand, will aim to track the Alerian Galaxy Global Blockchain Equity, Trusts & ETPs Index, track all of the portfolios under SATO while also focusing on research firms, and blockchain outfits not focused on cryptocurrencies. Both the SATO and BLKC ETFs has been listed on the Cboe Global Markets
“Today’s launch opens up a new way for investors to access this fast-growing asset class, combining exposure to key companies in the cryptocurrency and blockchain ecosystem with an allocation to an investment vehicle that directly holds digital assets, all within the ETF wrapper,” said John Hoffman, Head of Americas, ETFs & Indexed Strategies at Invesco. “The combined, broad expertise Alerian and Galaxy bring to these Invesco ETFs is a unique advantage and we are excited to align with both firms on a combined long-term vision around the potential digital assets and blockchain can bring to clients’ investment outcomes.”
Exchange-Traded Fund products are one of the most cautious investment products the SEC does not want to get wrong. With many factors, including but not limited to the anonymity of crypto transactions and the coin’s environmental impacts being cited as the reasons for the current drawbacks in approving an ETF product, the U.S. has notably lagged behind its peers in this regard.
While ETF products that track companies with exposure to digital currencies have recently found more favour in the SEC’s eyes, the race for an actual Bitcoin ETF is still ongoing.
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