ATLANTA, Jan. 29,
2024 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ), a
leading global provider of exchange-traded funds (ETFs), in
partnership with Galaxy Asset Management,1 one of
the world's largest digital asset and blockchain investment
managers, today announced a reduction in Invesco Galaxy
Bitcoin ETF's (BTCO) Sponsor Fee by 14 basis points,
lowering the total expense ratio from 0.39% to 0.25%.
Invesco continues to waive BTCO's entire fee on assets up to
$5 billion2 for BTCO's
first six months of operations, effectively bringing the total
expense ratio of BTCO to 0 basis points, with the discretion to
extend the fee waiver further.
Invesco's partnership with Galaxy Asset Management, an affiliate
of Galaxy Digital Holdings Ltd., combines the unparalleled
strengths of both companies in the management of BTCO. These
tenures in the ETF and digital assets space differentiates BTCO
from its peers, bringing seasoned expertise and institutional-grade
infrastructure to the process. Galaxy also conducts some of the
most comprehensive and in-depth thought leadership and research on
digital assets. Investors can pair this research with the ETF
expertise of Invesco's dedicated product strategy teams to stay
current on important developments in the digital asset space.
BTCO invests directly in physical bitcoin to allow
investors to access the performance of the market price of
bitcoin, as measured by the Lukka Prime
Bitcoin Reference Rate3 through an ETF
structure to provide additional safeguards and ease of trading.
To view the full prospectus for the Invesco Galaxy
Bitcoin ETF, please visit this link: Invesco Galaxy
Bitcoin 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 BTCO.
2 As disclosed in BTCO's prospectus, for a 6-month
period commencing on the day the Trust's Shares are initially
listed and begin trading, the Sponsor intends to waive the entire
Sponsor Fee on the first $5 billion
of Trust assets.
3 The Lukka Prime Bitcoin Reference
Rate represents a fair market value for bitcoin that
is aligned to GAAP and IFRS guidelines.
About Invesco Ltd.
Invesco Ltd. (Ticker
NYSE: IVZ) 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 US$1.58 trillion in assets on behalf of clients
worldwide as of December 31, 2023.
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 Trust is speculative and involves a high degree of risk.
An investor may lose all or substantially all of an investment in
the Trust.
The Trust 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 Trust 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 Trust currently intends to effect creations and redemptions
principally for cash, rather than principally in-kind because of
the nature of the Trust's investments. As such, investments in the
Trust may be less tax efficient than investments in ETFs that
create and redeem in-kind.
Bitcoin 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
bitcoin could decline rapidly, including to
zero.
The further development and acceptance of the
Bitcoin 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 bitcoin and therefore an investment in the
Shares.
Currently, there is relatively limited use of
bitcoin 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
bitcoin or the operations of the Bitcoin
network or venues on which bitcoin trades. For
example, it may become difficult or illegal to acquire, hold, sell
or use bitcoin in one or more countries, which could
adversely impact the price of bitcoin.
The Trust's returns will not match the performance of
bitcoin 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 bitcoin may be impacted by the
behaviour of a small number of influential individuals or
companies.
Bitcoin faces 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.
Miners could act in collusion to raise transaction fees, which
may affect the usage of the Bitcoin network.
Competition from central bank digital currencies ("CDBCs") and
other digital assets could adversely affect the value of
bitcoin and other digital assets.
Prices of bitcoin may be affected due to
stablecoins, the activities of stablecoin users and
their regulatory treatment.
The open-source structure of the Bitcoin network
protocol means that certain core developers and other contributors
may not be directly compensated for their contributions in
maintaining and developing the Bitcoin network
protocol. A failure to properly monitor and upgrade the
Bitcoin network protocol could damage the network.
Lack of clarity in the corporate governance of
bitcoin may lead to ineffective decision-making that
slow development or prevents the Bitcoin network from
overcoming important obstacles.
If the award of new bitcoin for solving blocks and
transaction fees for recording transactions are not sufficiently
high to incentivize miners, miners may reduce or cease processing
power to solve blocks which could lead to confirmations on the
Bitcoin blockchain being temporarily slowed.
Significant delays in transaction confirmations could result in a
loss of confidence in the Bitcoin network, which
could adversely affect an investment in the Shares.
A temporary or permanent "fork" in the blockchain network could
adversely affect an investment in the Shares.
Flaws in the source code of Bitcoin, or flaws in
the underlying cryptography, could leave the Bitcoin
network vulnerable to a multitude of attack vectors.
A disruption of the internet may affect the use of
bitcoin 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.
Shareholders do not have the protections associated with
ownership of Shares in an investment company registered under the
Investment Company Act of 1940 (the "1940 Act") or the protections
afforded by the Commodity Exchange Act (the "CEA").
Future regulations may require the Trust and the Sponsor to
become registered, which may cause the Trust to liquidate.
The tax treatment of bitcoin and other digital
assets is uncertain and may be adverse, which could adversely
affect the value of an investment in the Shares.
Intellectual property rights claims may adversely affect the
operation of the Bitcoin network.
The venues through which bitcoin trades are
relatively new and may be more exposed to operations problems or
failure than trading venues for other assets.
Ownership of bitcoin is pseudonymous, and the
supply of accessible bitcoin is unknown. Entities with
substantial holdings in bitcoin may engage in
large-scale sales or distributions, either on nonmarket terms or in
the ordinary course, which could result in a reduction in in the
price of bitcoin.
The Trust is subject to the risks due to its concentration in a
single asset.
Bitcoin spot trading venues are not subject to the
same regulatory oversight as traditional equity exchanges.
Bitcoin 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.
There are risks involved with investing in ETFs, including
possible loss of money. ETFs are subject to risks similar to
stocks, including those related to short selling and margin
maintenance. Ordinary brokerage commissions apply. The Trust's
return may not match the return of the Benchmark. The Trust is
subject to certain other risks. Please see the current prospectus
for more information regarding the risk associated with 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 Trust and tender those Shares for
redemption to the Trust in Creation Unit aggregations only,
typically consisting of 5,000 Shares.
Invesco Distributors, Inc. is the US distributor for Invesco's
retail products and private placements, and Invesco Capital
Management LLC is the Sponsor of the Trust. Both entities are
indirect, wholly owned subsidiaries of Invesco Ltd.
NA3306910 1/24
Media Relations Contact: Stephanie
Diiorio, 212-278-9037, stephanie.diiorio@invesco.com
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SOURCE Invesco Ltd.