Ethereum
Invesco and Galaxy Launch Invesco Galaxy Ethereum ETF (QETH)
ATLANTA, July 23, 2024 /PRNewswire/ — Invesco Ltd. (NYSE: IVZ), a leading global provider of exchange-traded products (ETPs), in partnership with Galaxy Asset Management1, one of the world’s largest digital asset and blockchain managers, today announced the launch of Invesco Galaxy Ethereum ETF (QETH). QETH is a spot ETP that invests directly in physical Ethereum to provide investors with access to the market price performance of Ethereum, as measured by the Ethereum Lukka Prime2 Reference Rate. QETH begins trading on the Cboe BZX exchange today, providing investors with access to investing in Ethereum.
QETH offers investors a differentiated and accessible way to participate in the disruptive ether market. It will leverage Invesco’s experience in innovative ETPs and Galaxy’s deep institutional infrastructure and significant expertise in digital asset management.
The launch of QETH builds on the joint success of Galaxy and Invesco following the launch of the Invesco Galaxy Bitcoin ETF (BTCO) in January this year.
“Today’s launch of the Invesco Galaxy Ethereum ETF will leverage Invesco’s experience in ETF management and Galaxy’s expertise in digital assets to provide investors with efficient and secure exposure to Ethereum,” said Brian Hartigan, Global Head of ETF and Index Strategy at Invesco. “QETH joins BTCO, SATO and BLKC in the Invesco Galaxy ETP to provide easier access and additional safeguards for U.S. investors looking to build a diverse digital asset portfolio with ETFs.”
“ETH has long been a staple asset in crypto portfolios, 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 growing asset class in a familiar, secure and easy-to-trade format. By combining our unmatched collective experience in developing best-in-class investment solutions across traditional and digital asset markets, Invesco and Galaxy Asset Management are well-positioned to continue to lead the way in providing institutional exposure to the most value-creating sectors of the digital asset ecosystem.”
To view the full prospectus of 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 for QETH.
Lukka Prime’s Ethereum Reference Rate represents a fair market value for Ethereum that is aligned with GAAP and IFRS guidelines.
About Invesco Ltd.
Invesco Ltd. (TickerNYSE: 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 offer a full range of active, passive and alternative investment capabilities. As of March 31, 2024, Invesco managed US$1.7 trillion in assets on behalf of clients worldwide. For more information, visit www.invesco.com/corporate.
About Galaxy
Galaxy (TSX: GLXY) is a leader in digital assets and blockchain, providing access to the growing digital economy. We serve a diverse client base including institutions, startups and qualified individuals. Since 2018, Galaxy has built a holistic financial platform spanning three complementary operating businesses: Global Markets, Asset Management and Digital Infrastructure Solutions. Our offerings include, among others, trading, lending, strategic advisory services, institutional-grade investment solutions, proprietary bitcoin mining and custodial services, network validation services and enterprise custody technology development. The Company is headquartered in New York City with global offices in North America, Europe and Asia. Additional information about Galaxy’s business and products can be found at www.galaxy.com.
The Fund is speculative and carries a high degree of risk. An investor may lose all or substantially all of his or her 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.
The Fund’s shares are not FDIC insured, may lose value and are not backed by any bank guarantee.
This document must be accompanied or preceded by a prospectus. Please read the prospectus carefully before investing.
The Fund currently expects to make creations and redemptions primarily in cash, rather than in kind, due to the nature of the Fund’s investments. As a result, investments in the Fund may be less tax efficient than investments in ETFs that create and redeem shares in kind.
The Trust will not participate in the Ethereum network’s proof-of-stake validation mechanism (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 compared to more traditional asset classes, which may be due to speculation regarding possible future appreciation in its value.
The value of the Trust’s investments in Ethereum could decline rapidly, or even to zero.
The development and acceptance of the Ethereum network, which is part of a new and rapidly evolving industry, is subject to various factors that are difficult to assess. The slowdown, cessation or reversal of the development or acceptance of the network may have a negative effect on the price of ether and therefore on an investment in stocks.
Currently, the use of Ether in the retail and commercial market is relatively limited compared to its relatively widespread use as a store of value, contributing to price volatility that could negatively impact an investment in stocks.
Regulatory changes or actions may change the nature of an investment in bitcoin or restrict the use of ether or the operations of the Ethereum network or the venues where bitcoin is traded. For example, it may become difficult or illegal to acquire, hold, sell or use ether in one or more countries, which could negatively impact the price of ether.
In the past, vulnerabilities in Ether’s source code have been discovered, including those that resulted in users stealing Ether. Several errors and flaws have been publicly found and fixed, including those that disabled certain features for users and exposed users’ personal information. Flaws or exploits in the source code have been discovered that have allowed malicious actors to take or create money in violation of the network’s known rules.
The Trust’s returns will not match the performance of Ether as the Trust bears sponsorship fees and may incur other expenses.
The market price of shares may reflect a discount or a premium to the net asset value.
The price of Ether can be affected by the behavior of a small number of influential individuals or companies.
The Ethereum and Ether network face scaling obstacles that can result in high fees or slow transaction settlement times, and attempts to increase transaction volume may not be effective.
Competition from central bank digital currencies (“CBDCs”) and other digital assets could negatively impact the value of Ether and other digital assets.
Ether prices can be affected by stablecoins, the activities of stablecoin users, and their regulatory treatment.
A temporary or permanent “fork” of the Ethereum network could negatively impact an investment in the stock. A disruption to the Internet could affect the use of Ethereum and, therefore, the value of the stock.
Risks of over-regulation or under-regulation in the digital asset ecosystem could stifle innovation, which could negatively impact stock values.
Future regulations may require the Trust and the Sponsor to register, which could result in the liquidation of the Trust.
The tax treatment of ether and other digital assets is uncertain and may be unfavorable, which could have a negative effect on the value of an investment in the stock.
The venues through which ether is traded are relatively new and may be more prone to operational issues or failures than venues trading other assets.
The Trust is subject to risks associated with its concentration in a single asset.
Ether spot trading venues are not subject to the same regulatory oversight as traditional stock exchanges.
Ethereum transactions are irrevocable and stolen or improperly transferred Bitcoin may be irrecoverable. Therefore, any improperly executed Bitcoin transaction could negatively impact 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 is not a recommendation of any investment strategy or product for any particular investor. Investors should consult a financial professional before making any investment decision.
Shares are not individually redeemable and owners of shares may acquire such shares from the Fund and submit them for redemption to the Fund only in aggregates of creation units, generally consisting of 10,000, 20,000, 25,000, 50,000, 80,000, 100,000 or 150,000 shares.
Invesco Distributors, Inc. is the U.S. distributor of Invesco’s retail and private investment products, and Invesco Capital Management LLC is the investment adviser to the 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]
SOURCE Invesco Ltd.