Invesco is launching a bitcoin ETP, designed, it says, for sophisticated investors.
The firm writes that the Invesco Physical Bitcoin ETP will be 100 per cent backed by holdings in the underlying digital assets with the aim of delivering the price performance of bitcoin, less a fixed 0.99 per cent annual fee.
Bitcoin (BTC) accounts for 42 per cent of the USD2 trillion cryptocurrency market and, with more than USD2 billion worth of bitcoins traded on digital exchanges around the world each day, it is the most liquid, Invesco writes.
Bitcoins will be held on behalf of the Invesco ETP by Zodia Custody, a UK-based digital asset custodian, who are registered with the FCA as a Crypto Asset Business under UK Anti-Money Laundering Regulations. Zodia Custody was incubated by SC Ventures, the innovation arm of Standard Chartered. Northern Trust is a co-investor in Zodia Custody and the administrator for the Invesco ETP.
CoinShares, Europe’s largest and longest standing digital asset investment firm, Invesco writes, is the index sponsor and will also serve as the execution agent for the Physical Bitcoin ETP. The ETP will be listed on Xetra, with a base trading currency of EUR and USD.