ATLANTA, Oct. 7, 2021 /PRNewswire/ -- Invesco Ltd. (NYSE:
IVZ), a leading global asset management firm, today announced the
launch of two passively managed exchange-traded funds (ETFs)
focused on digital assets and blockchain. The Invesco Alerian
Galaxy Crypto Economy ETF (SATO) and the Invesco
Alerian Galaxy Blockchain Users and Decentralized Commerce
ETF (BLKC) will offer thematic equity exposure to
global public companies and select investment vehicles that are
actively engaged in the cryptocurrency and blockchain sectors.
Beginning today at 9:30am ET the
following new ETFs will list on Cboe Global Markets:
- Invesco Alerian Galaxy Crypto Economy ETF (SATO)
- Invesco Alerian Galaxy Blockchain Users and
Decentralized Commerce ETF (BLKC)
"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. "The combined, broad
expertise Alerian and Galaxy bring to these Invesco ETFs is a
unique advantage and we are excited to align with both firms on a
combined long-term vision around the potential digital assets and
blockchain can bring to clients' investment outcomes."
The Invesco Alerian Galaxy Crypto Economy ETF
(SATO) will aim to track the Alerian Galaxy Global
Cryptocurrency-Focused Blockchain Equity, Trusts & ETPs Index
and provide exposure to companies participating in both the
cryptocurrency and blockchain space, including businesses such
as cryptocurrency miners, cryptocurrency infrastructure
technologies and cryptocurrency buyers. The Invesco
Alerian Galaxy Blockchain Users and Decentralized Commerce
ETF (BLKC) will aim to track the Alerian Galaxy Global
Blockchain Equity, Trusts & ETPs Index and offer access to the
same companies as SATO as well as a segment of companies that are
engaged in the research and development of blockchain technology
not tied to cryptocurrency.
In addition, both ETFs will maintain an allocation to an
investment vehicle that directly holds physical cryptocurrency.
This is the largest such dedicated holding currently available in
an ETF in the U.S.
The underlying indexes represent a partnership of Alerian
S-Network Global Indexes, a pioneering index provider focused on
building innovative, index-based investment strategies and Galaxy
Digital Holdings Ltd. (TSX: GLXY), a leading financial services and
investment management innovator in the digital assets,
cryptocurrency and blockchain technology sectors.
The indexes combine both firms' expertise to build benchmarks
with first-of-a-kind access to the cryptocurrency and blockchain
ecosystem. Both Alerian Galaxy Indexes are passive,
rules-based, transparent, and rebalance monthly.
"Alerian is proud to continue its track record of index
innovation and partnering with industry leading firms like Invesco
and Galaxy to deliver thoughtfully designed solutions to meet
investor demand," said Robert
Hughes, Chief Commercial Officer of Alerian S-Network Global
Indexes. "Our underlying indexes were thoughtfully constructed
through research and comprehensive analysis to provide unique
access to the ever-growing blockchain and cryptocurrency
universe."
"Today marks an exciting milestone as we unlock another way for
retail and institutional investors to get involved in the rapidly
evolving and transformative world of digital assets," said
Steve Kurz, Partner and Head of
Asset Management at Galaxy Digital. "We look forward to our
continued partnership with Invesco, a leader in ETFs, and Alerian,
a leader in index-based investment strategies, as we continue
bridging the gap between traditional and digital finance."
About Invesco Ltd.
Invesco Ltd. is a global independent investment management firm
dedicated to delivering an investment experience that helps people
get more out of life. Our distinctive investment teams deliver a
comprehensive range of active, passive and alternative investment
capabilities. With offices in more than 20 countries, Invesco
managed $1.5 trillion in assets on behalf of clients
worldwide as of June 30, 2021. For more information,
visit www.invesco.com.
About Alerian S-Network Global Indexes
Alerian is a leading independent index provider focused on
building innovative, index-based investment strategies. Alerian
acquired S-Network Global Indexes in 2020, expanding the firm's
index offerings and services to partners. Combined, the firm serves
the global investment community through indexing, benchmarking, and
calculation services. Built on a foundation of data rigor and
specialty research, Alerian S-Network Global Indexes offer a
comprehensive family of energy, income, and thematic indexes.
Today, the firm has over $23 billion in total assets
benchmarked to its indexes and over 200 customers worldwide.
About Galaxy Digital
Galaxy Digital is a diversified financial services and
investment management company in the digital asset, cryptocurrency,
and blockchain technology sectors. Galaxy Digital's team has
extensive experience spanning investing, portfolio management,
capital markets, venture capital, asset management, and blockchain
technology. Galaxy Digital operates in the following businesses:
Trading, Asset Management, Principal Investments, Investment
Banking, and Mining. Galaxy Digital's CEO and Founder is Mike
Novogratz. The Company is headquartered in New York City, with
offices in Chicago, San
Francisco, London, Amsterdam, Tokyo, Hong Kong,
the Cayman Islands (registered office), and New
Jersey.
Not a Deposit | Not FDIC Insured |
Not Guaranteed by the Bank | May Lose Value
| Not Insured by any Federal Government Agency
Important Information
An investment cannot be made directly into an index.
The Alerian Galaxy Global Cryptocurrency-Focused Blockchain
Equity, Trusts & ETPs Index is primarily comprised of two
different components; (i) stocks of companies that are materially
engaged in cryptocurrency mining, cryptocurrency buying, or
enabling technologies that facilitate the transfer, custody, and
issuance of cryptocurrency (the "Equity Component"); and (ii) ETPs
and investment trusts linked to cryptocurrency (the "ETP and Trust
Component").
The Alerian Galaxy Global Blockchain Equity, Trusts & ETPs
Index is primarily comprised of two different components; (i)
stocks of companies that are materially engaged in the development
of blockchain technology, cryptocurrency mining, cryptocurrency
buying, or enabling technologies that facilitate the transfer,
custody, and issuance of cryptocurrency (the "Equity Component");
and (ii) ETPs and investment trusts linked to cryptocurrency (the
"ETP and Trust Component").
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.
About Risk
There are risks involved with investing in ETFs, including
possible loss of money. Shares are not actively managed and are
subject to risks similar to those of stocks, including those
regarding short selling and margin maintenance requirements.
Ordinary brokerage commissions apply. The Fund's return may not
match the return of the Underlying Index. The Fund is subject to
certain other risks. Please see the current prospectus for more
information regarding the risk associated with an investment in the
Fund.
Many significant aspects of the U.S. federal income tax
treatment of investments in cryptocurrencies are uncertain and an
investment in cryptocurrencies, even indirectly, may produce income
that is not treated as qualifying income for purposes of the income
test applicable to regulated investment companies, such as the
Funds. To the extent a Fund invests in any cryptocurrency-linked
assets that generate non-qualifying income, it intends to do so
through the Subsidiary.
Companies transacting on the blockchain are required to manage a
user's account (or "wallet") which is accessed via cryptographic
keys. Mismanagement, theft, or loss of the keys can adversely
affect the companies operations on the blockchain.
Certain companies in the Underlying Index may be engaged in
other lines of business unrelated to blockchain and cryptocurrency
and these lines of business could adversely affect their operating
results. Operating results of these companies may fluctuate due
these additional risks and events in the other lines of business.
Also, a company's ability to engage in new activities may expose it
to business risks with which it has less experience than the
traditional risks associated with its businesses. Despite a
company's possible success in activities linked to its use of
blockchain, there can be no assurance that the other lines of
business in which these companies are engaged will not have an
adverse effect on a company's business or financial condition.
In seeking to track the Underlying Index, the Funds may obtain
investment exposure to cryptocurrencies indirectly through private
vehicles that are traded over-the-counter market, such as the
Grayscale Bitcoin Investment Trust ("GBTC"). An investment in these
vehicles exposes the Funds to all risks related to digital
currencies and those specific to private vehicles and private funds
generally, which may include, but are not limited to, liquidity
risk, lack of a secondary market to trade securities, management
risk, concentration risk and valuation risk. Private funds are
generally not registered under the 1940 Act, the Securities Act of
1933, or any state securities laws, therefore investments in such
vehicles will not benefit from the protections and restrictions of
such laws. To the extent such vehicles are traded, they may trade
at a premium or discount to their net asset values. The Funds will
indirectly pay a proportional share of the expenses of the private
vehicles in which it invests, in addition to the fees and expenses
the Funds already will pay to the Adviser. As a result,
shareholders will absorb duplicate levels of fees with respect to
the Fund's investments in such vehicles.
Companies engaged in the development, enablement and acquisition
of blockchain technologies are subject to a number of risks.
Blockchain technology is new and many of its uses may be untested.
There is no assurance that widespread adoption will occur. The
extent to which companies held by the Fund utilize blockchain
technology may vary.
As blockchain technology is new, there is a risk that companies
developing applications of this technology may be subject to
additional risks including, but not limited to, intellectual
property claims and legal action. Furthermore, blockchain
technology may be subject to future law and regulation that may
adversely impact adoption.
Blockchain technology relies on the internet, the disruption of
which may adversely affect companies involved with the technology
or even the blockchain itself.
While the Funds will not invest directly in cryptocurrencies,
the value of a Fund's investments in cryptocurrency-linked assets
(including private trusts and ETPs) is subject to fluctuations in
the value of the cryptocurrency, which have been and may in the
future be highly volatile. The price of a digital currency could
drop precipitously (including to zero) for a variety of reasons,
including, but not limited to, regulatory changes, a crisis of
confidence, flaw or operational issue in a digital currency network
or a change in user preference to competing cryptocurrencies.
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 50,000 Shares.
Alerian is a trademark of Alerian, Galaxy is
a trademark of Galaxy Digital LP ("Galaxy') and both trademarks
along with the Alerian Galaxy Global Blockchain Index and the
Alerian Galaxy Global Cryptocurrency-Focused Blockchain Index have
been licensed for use by Invesco, Ltd. ("Invesco") for use in
connection with the Invesco Alerian Galaxy Blockchain Economy
ETF and the Invesco Alerian Galaxy Crypto Economy ETF
(collectively, the "ETFs"). The ETFs are not issued, sponsored,
endorsed, sold or promoted by Alerian, Galaxy or any of their
affiliates. Neither Alerian nor Galaxy makes any representation or
warranty, express or implied, to the purchasers or owners of the
ETFs or any member of the public regarding the advisability of
investing in securities generally or in the ETFs particularly or
the ability of the Indexes to track general market performance.
Alerian and Galaxy's only relationship to the ETFs is the licensing
of their trademarks and the Indexes, which are determined, composed
and calculated by Alerian without regard to Invesco or the ETFs.
Neither Alerian nor Galaxy is responsible for or has participated
in the determination of the timing of, prices at, or quantities of
the ETFs issued by Invesco, and neither Alerian nor Galaxy has any
obligation or liability in connection with the issuance,
administration, marketing or trading of the ETFs.
Invesco is not affiliated with Alerian S-Network Global Indexes
or Galaxy Digital Holdings Ltd.
Before investing, investors should carefully read the
prospectus/summary prospectus and carefully consider the investment
objectives, risks, charges and expenses. For this and more complete
information about the Fund call 800 983 0903 or visit invesco.com
for the prospectus/summary prospectus.
Invesco Distributors, Inc. is the US distributor for
Invesco's retail products and private placements. It is an
indirect, wholly owned subsidiary of Invesco Ltd.
Invesco Media Relations Contact: Stephanie Diiorio,
Stephanie.Diiorio@invesco.com, (212) 278-9037
Galaxy Digital Contacts:
Investors Relations
Contacts:
Elsa Ballard,
elsa.ballard@galaxydigital.io, (212) 390-9216
Steven Wald,
steven.wald@galaxydigital.io, (212) 390-9216
Media Relations Contact: Eva
Casanova, media@galaxydigital.io, (917) 847-4796
Alerian Media Relations Contact: Kim Greenberg,
kim.greenberg@alerian.com, (516) 241-3892
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SOURCE Invesco Ltd.