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. (Ticker 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.
NA 3687270 7/24
Media Relations Contact: Stephanie
Diiorio, 212-278-9037, stephanie.diiorio@invesco.com
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SOURCE Invesco Ltd.