Investment management company Invesco is teaming up with upstart digital asset firm Galaxy to launch a range of funds backed by cryptocurrencies including bitcoin.

The US-based firm said that it will tap Galaxy to rollout ‘suite of US-listed, physically backed, digital asset’ funds.

The move will enable Invesco to be at the forefront of the crypto exchange-traded fund market, which is yet to be approved by the US financial regulator.

Invesco ETFs & Indexed Strategies head of Americas John Hoffman said: “Invesco has a long history of using ETFs to democratise investor access to disruptive, innovative asset classes.

“Now, through our partnership with market leader Galaxy Digital, we are able to incorporate their expertise of blockchain technology, digital assets and cryptocurrency into our product capabilities.

“This combination of complementary strengths will help clients safely and prudently navigate this exciting new asset class to help meet their desired investment outcomes.”

Invesco’s ETFs & Indexed Strategies is said to have more than doubled its assets under management (AuM) to $471bn globally over the past three years.

Commenting on the partnership, Galaxy Digital head of asset management Steve Kurz said: “Our partnership with Invesco, a longstanding ETF innovator, will bring the same thoughtful approach to educating investors about digital assets as Invesco has brought to the ETF industry itself.”

Meanwhile, the US Securities and Exchange Commission has shown some interest in ETFs based on crypto futures as demand for such funds grows amongst both institutional and retail investors.

Besides Invesco, a number of other issuers have approached the regulator seeking licence to roll out crypto ETFs.