Capital markets News

Invesco launches blockchain, crypto ETFs


Today asset management firm Invesco announced the launch of two U.S. exchange-traded funds (ETFs) focused on digital assets and blockchain. The passively managed funds are based on two indices created by Galaxy Digital and Alerian S-Network Global Indexes. Invesco has $1.5 trillion in assets under management.

Much of the asset allocation will be in companies that have exposure to the sector, such as cryptocurrency miners, infrastructure firms and crypto buyers. However, it also includes investment in Trusts such as the Grayscale Bitcoin Investment Trust, which holds crypto directly.

The two ETFs, Invesco Alerian Galaxy Crypto Economy ETF (SATO) and Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC), are listed on 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.

In the United States, the SEC has been reluctant to greenlight ETFs that directly invested in cryptocurrencies. However, SEC Chair Gary Gensler has said he’d be more comfortable about ETFs with exposure to listed Bitcoin futures. Presumably, that’s because there’s some level of oversight regarding pricing. 

However, Canada offers crypto ETFs with direct crypto investments, including ones issued by Galaxy Digital. And in Europe, there are multiple cryptocurrency Exchange Traded Notes (ETNs) from Van Eck, WisdomTree, CoinShares, ETHetc and others.

In the United States, other ETFs have been approved that, like Invesco’s, primarily invest in cryptocurrency companies such as the Bitwise Crypto Industry Innovators ETF. And in July, Goldman Sachs announced plans for the Goldman Sachs Innovate DeFi and Blockchain Equity ETF.

Meanwhile, Morgan Stanley invested in NYDIG, which provides exposure to Bitcoin only. Wells Fargo and JP Morgan clients can also invest in NYDIG funds.