- Investment management firm Invesco will be introducing a new Bitcoin ETF that offers exposure to BTC futures products.
- US SEC Chair Gary Gensler recently stated that he is more open to ETFs that only offer exposure to Bitcoin futures.
- Invesco’s Bitcoin Strategy ETF will also invest in cash and cash-like products.
Investment management firm Invesco is planning to launch a new Bitcoin exchange-traded fund (ETF) that will not invest in the leading cryptocurrency directly.
Invesco to launch third crypto ETF
Atlanta-based investment company Invesco has applied with the United States Securities & Exchange Commission (SEC) for a new investment product called the Bitcoin Strategy ETF.
The firm, with $1.3 trillion in assets under management, will introduce a new ETF that would not invest directly into the bellwether digital asset, but it will have full exposure to Bitcoin futures.
The Bitcoin Strategy ETF will also invest in Bitcoin electronic-traded notes (ETNs) and crypto ETFs outside of the United States, including the Grayscale Bitcoin Trust (GBTC).
The new fund from Invesco will also invest directly in cash and high-quality securities, including those from the US government such as US Treasury notes and bonds.
Prior to the Bitcoin Strategy ETF, Invesco filed two applications for cryptocurrency ETFs, including exposure to crypto mining companies and firms that have invested directly in the leading cryptocurrency, including Square, Tesla and MicroStrategy.
The application also details that the fund is “non-diversified,” which means that it would not need to meet diversification requirements under the Investment Company Act of 1940.
While over a dozen Bitcoin ETFs have been filed with the US SEC, the regulator has yet to approve of any of these funds with exposure to the bellwether cryptocurrency.
The agency has been reluctant to approve any of the cryptocurrency ETFs, citing the risk of market manipulation and the volatility of the new asset class.
So far, the SEC has either rejected or delayed decisions on various Bitcoin ETFs, although other countries including Canada have already approved a number of crypto funds.
SEC Chair Gary Gensler recently commented that he would be more open to approving a Bitcoin ETF that does not offer direct exposure to the leading cryptocurrency.
However, according to Bloomberg ETF research analyst James Seyffart, investors are not looking for Bitcoin futures exposure. They would like physical BTC exposure instead.
Bitcoin price targets a $2,500 move to the upside
Bitcoin price has once again surged above $40,000, as BTC rallies on the bullish momentum. On the 4-hour chart, the leading cryptocurrency has formed a parallel channel as the digital asset starts to consolidate.
Although the governing chart pattern suggests that BTC is expecting further sideways price action, the bellwether cryptocurrency could be targeting an upswing of at least 6% with few obstacles ahead.
As long as Bitcoin price closes above the 50 four-hour Simple Moving Average (SMA) at $39,838, BTC could tag the 50% Fibonacci extension level at $42,961 as its first bullish target should the cryptocurrency slice above the topside trend line of the parallel channel at $41,215.
BTC/USDT 4-hour chart
The Relative Strength Index (RSI) suggests that the largest cryptocurrency by market capitalization is currently not overbought, signaling more room to target the upside. Bigger aspirations for Bitcoin price would aim for the upper boundary of the parallel channel above, a 13% climb to $45,821 should BTC buying pressure see a spike.
Currently, the 50 four-hour SMA acts as meaningful support for Bitcoin price at $39,838, and the next line of defense is at the 38.2% Fibonacci extension level at $39,608. A reversal of fortune could take BTC further down to the middle boundary of the parallel channel at $38,936 before reaching the demand barrier that extends from $36,482 to $37,749.
Should Bitcoin price suffer a catastrophic downturn, it may discover further support at the 200 four-hour SMA at $35,143.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
![Ethereum has lost its “ultra” sound money status, faces key rectangle resistance hurdle](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Ethereum/Ethereum_Coins_31_03_XtraSmall.jpg)
Ethereum has lost its “ultra” sound money status, faces key rectangle resistance hurdle
Ethereum is up 0.5% on Thursday following a recent analysis showing that the top altcoin lost its "ultra" sound money narrative. Meanwhile, ETH ETFs recorded net inflows for the first time after nine days of consecutive outflows.
![Solana bears dominate market as SunPump has potentially led to less demand for SOL](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Solana/Solana_Crypto_31_XtraSmall.jpg)
Solana bears dominate market as SunPump has potentially led to less demand for SOL
Solana is down 2.5% on Thursday following bearish signals across its funding rate and total fees captured. SOL's weak performance could also be linked to the declining traction seen in its meme coin generation platform Pump.fun.
![AI tokens see narrow gains as Wall Street banks raise price targets on NVDA](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/PEPE/PEPE_coin_2_XtraSmall.jpg)
AI tokens see narrow gains as Wall Street banks raise price targets on NVDA
AI tokens NEAR, ICP, RENDER and TAO briefly traded in the green on Thursday following Wall Street banks' positivity toward Nvidia's earnings report. While a correction followed, these tokens could rally if NVDA meets expectations.
![XRP back above $0.57 even as Ripple traders take $8 million in profits](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptos_XtraSmall.jpg)
XRP back above $0.57 even as Ripple traders take $8 million in profits
Ripple (XRP) traders have consistently taken profits on their holdings in the last two weeks, per Santiment data. Once again, traders have grabbed $8.36 million in profit so far on Thursday. Typically, profit-taking negatively influences the asset as it increases the selling pressure.
![Bitcoin: Will BTC continue its ongoing decline?](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_5_XtraSmall.jpg)
Bitcoin: Will BTC continue its ongoing decline?
Bitcoin (BTC) trades above $59,000 on Friday, but it has lost 7.5% this week so far after being rejected around the daily resistance of $65,000. The decline is supported by lower demand from the US spot Bitcoin ETFs, which registered a net outflow of $103.8 million, falling Bitcoin's Coinbase Premium Index, and a spike in Network Realized Profit/Loss. However, some investors seem to be taking the chance to buy BTC amid this price dip, as shown by the Exchange Netflow data.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.