ATLANTA, July 23, 2024 /PRNewswire/ -- Invesco Ltd. (NYSE:IVZ), a leading global provider of exchange-traded products (ETPs), in partnership with Galaxy Asset Management,1, one of the world's largest digital assets and blockchain investment managers, today announced the launch of the Invesco Galaxy Ethereum ETF (QETH). QETH is a spot ETP that invests directly in physical Ethereum to offer investors access to the performance of the market price of Ethereum, as measured by the Lukka Prime Ethereum Reference Rate2. QETH begins trading on the Cboe BZX Exchange today, granting investors access to Ethereum investing.
QETH offers investors a differentiated and accessible way of participating in the disruptive ether market. It will leverage Invesco's track record of pioneering innovative ETPs and Galaxy's deep institutional-grade infrastructure and significant expertise in digital asset management.
The launch of QETH builds on Galaxy's and Invesco's successful joint track record following the launch of the Invesco Galaxy Bitcoin ETF (BTCO) in January of this year.
"Today's launch of Invesco Galaxy Ethereum ETF will leverage Invesco's experience in managing ETPs and Galaxy's expertise with digital assets to provide investors with efficient and secure exposure to Ethereum," says Brian Hartigan, Global Head of ETF and Index Strategy at Invesco. "QETH joins Invesco Galaxy ETP's BTCO, SATO and BLKC in providing easier access and additional safeguards to US investors looking to create a varied digital assets portfolio with ETFs."
"ETH has served as a core asset in crypto portfolios for a long time, driven by the tremendous success of the Ethereum blockchain," said Steve Kurz, Global Head of Galaxy Asset Management. "With the launch of QETH, we are excited to offer investors exposure to this burgeoning asset class in a format that is familiar, safe, and easy to trade. By combining our unrivalled collective experience in developing best-in-class investment solutions across both traditional and digital asset markets, Invesco and Galaxy Asset Management are well-positioned to continue at the forefront of enabling institutional exposure to the most value-creative corners of the digital asset ecosystem."
To view the full prospectus for the Invesco Galaxy Ethereum ETF, please visit this link: https://connect.rightprospectus.com/Invesco/TVT/46148D107/P?site=ETF
1 Galaxy Asset Management is not affiliated with Invesco. Galaxy Asset Management is the Galaxy Division that operates Galaxy Digital Funds, the execution agent of QETH.
2 The Lukka Prime Ethereum Reference Rate represents a fair market value for Ethereum that is aligned to GAAP and IFRS guidelines.
About Invesco Ltd.
Invesco Ltd. (NYSE:IVZ) is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. With offices in more than 20 countries, our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. Invesco managed US $1.7 trillion in assets on behalf of clients worldwide as of March 31, 2024. For more information, visit www.invesco.com/corporate.
About Galaxy
Galaxy (TSX:GLXY) is a digital asset and blockchain leader providing access to the growing digital economy. We serve a diversified client base, including institutions, startups, and qualified individuals. Since 2018, Galaxy has been building a holistic financial platform spanning three complementary operating businesses: Global Markets, Asset Management, and Digital Infrastructure Solutions. Our offerings include, amongst others, trading, lending, strategic advisory services, institutional-grade investment solutions, proprietary bitcoin mining and hosting services, network validator services, and the development of enterprise custodial technology. The company is headquartered in New York City, with global offices across North America, Europe, and Asia. Additional information about Galaxy's businesses and products is available on www.galaxy.com.
The Fund is speculative and involves a high degree of risk. An investor may lose all or substantially all of an investment in the Fund. The Fund is not a mutual fund or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and is not subject to regulation thereunder.
Shares in the Fund are not FDIC insured, may lose value and have no bank guarantee.
This material must be accompanied or preceded by a prospectus. Please read the prospectus carefully before investing.
The Fund currently intends to effect creations and redemptions principally for cash, rather than principally in-kind because of the nature of the Fund's investments. As such, investments in the Fund may be less tax efficient than investments in ETFs that create and redeem in-kind.
The Trust will not participate in the proof-of-stake validation mechanism of the Ethereum network (i.e., the Trust will not "stake" its ether) to earn additional ether or seek other means of generating income from its ether holdings.
Ether has historically exhibited high price volatility relative to more traditional asset classes, which may be due to speculation regarding potential future appreciation in value.
The value of the Trust's investments in Ethereum could decline rapidly, including to zero.
The further development and acceptance of the Ethereum network, which is part of a new and rapidly changing industry, is subject to a variety of factors that are difficult to evaluate. The slowing, stopping or reversing of the development or acceptance of the network may adversely affect the price of ether and therefore an investment in the Shares.
Currently, there is relatively limited use of ether in the retail and commercial marketplace in comparison to relatively extensive use as a store of value, contributing to price volatility that could adversely affect an investment in the Shares.
Regulatory changes or actions may alter the nature of an investment in bitcoin or restrict the use of ether or the operations of the Ethereum network or venues on which bitcoin trades. For example, it may become difficult or illegal to acquire, hold, sell or use ether in one or more countries, which could adversely impact the price of ether.
In the past, flaws in the source code for ether have been discovered, including those that resulted in the theft of users' ether. Several errors and defects have been publicly found and corrected, including those that disabled some functionality for users and exposed users' personal information. Discovery of flaws in or exploitations of the source code that allow malicious actors to take or create money in contravention of known network rules has occurred.
The Trust's returns will not match the performance of ether because the Trust incurs the Sponsor Fee and may incur other expenses.
The Market Price of shares may reflect a discount or premium to NAV.
The price of ether may be impacted by the behaviour of a small number of influential individuals or companies.
The Ethereum network and ether face scaling obstacles that can lead to high fees or slow transaction settlement times, and attempts to increase the volume of transactions may not be effective.
Competition from central bank digital currencies ("CDBCs") and other digital assets could adversely affect the value of ether and other digital assets.
Prices of ether may be affected due to stablecoins, the activities of stablecoin users and their regulatory treatment.
A temporary or permanent "fork" in the Ethereum network could adversely affect an investment in the Shares. A disruption of the internet may affect the use of Ethereum and subsequently the value of the Shares.
Risks of over or under regulation in the digital asset ecosystem could stifle innovation, which could adversely impact the value of the Shares.
Future regulations may require the Trust and the Sponsor to become registered, which may cause the Trust to liquidate.
The tax treatment of ether and other digital assets is uncertain and may be adverse, which could adversely affect the value of an investment in the Shares.
The venues through which ether trades are relatively new and may be more exposed to operations problems or failure than trading venues for other assets.
The Trust is subject to the risks due to its concentration in a single asset.
Ether spot trading venues are not subject to the same regulatory oversight as traditional equity exchanges.
Ethereum transactions are irrevocable and stolen or incorrectly transferred bitcoin may be irretrievable. As a result, any incorrectly executed bitcoin transactions could adversely affect an investment in the Trust.
The opinions expressed herein are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco or Galaxy investment professionals.
This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.
Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Fund and tender those Shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 10,000, 20,000, 25,000, 50,000, 80,000, 100,000 or 150,000 Shares.
Invesco Distributors, Inc. is the US distributor for Invesco's retail products and private placements, and Invesco Capital Management LLC is the investment adviser for ETFs. Both entities are indirect, wholly owned subsidiaries of Invesco Ltd.
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Media Relations Contact: Stephanie Diiorio, 212-278-9037, [email protected]
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SOURCE Invesco Ltd.