Alternatives Playbook
Our outlook, asset class views, and allocation guidance for private markets and liquid alternatives investments. It leverages our institutional investment expertise, deep resources, and global investment platform.
Q1 2026 alternatives outlook
In the new year, we remain neutral on how we’re allocating risk within our alternatives portfolio. We’re encouraged, however, with the stabilization of the stock and credit markets, revival of mergers and acquisitions (M&A) activity, and a normalization of base rates. While base rates have begun their gradual path downwards to neutral, interest rates remain elevated and are expected to stay higher-for-longer as inflation persists. Credit spreads across private credit and liquid alternatives are at historic tights, showcasing the overall strength in financial conditions. We believe private credit potentially represents an attractive risk-adjusted opportunity, particularly the equity risk premium. The correction in valuations and stable fundamentals has led us to overweight real assets such as infrastructure and real estate. We anticipate that easing central banks, combined with a resilient economy, will start to improve the outlook for equity strategies, such as real estate and private equity.
Asset class views
In general, we’re still more bullish on the defensive parts of the alternative investment universe, favoring private debt, real assets, and hedged strategies.
Private real assets outlook and positioning
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Private credit outlook and positioning
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Private equity outlook and positioning
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Hedge funds outlook and positioning
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Listed real assets and commodities
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Digital assets outlook and positioning
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Get an in-depth look at our alternatives outlook and positioning based on valuations, fundamentals, and secular trends.
Asset allocations to consider
Adding private market and liquid alternatives assets to an investment portfolio may be able to provide enhanced return potential, volatility mitigation,1 diversification,2 and income potential.3 Advisors are looking to increase their allocation to alternatives according to research from Cerulli Associates, in partnership with the Investments & Wealth Institute (IWI).4 (See asset allocations below.)
Sample alternatives allocations
For those thinking about adding alternative investments to portfolios, consider our sample allocations. The actual allocations will vary based on a client's objectives, risk tolerance, comfort with illiquid investments, and how alternatives fit into their overall portfolio. We also provide suggestions on how to consider funding new alternatives allocations using traditional portfolio assets.
| Asset class | Sample allocation | Liquidity scale | Role in portfolio | Funding source | Related products |
|---|---|---|---|---|---|
| Private equity | 20 - 30% | Low | Growth | 100% equities | N/A |
| Private real assets | 20 - 30% | Low | Growth Income Diversification2 |
50% equities 50% fixed income |
Invesco Real Estate |
| Private credit | 20 - 30% | Low | Income Diversification2 |
30% equities 70% fixed income |
XCRTX |
| Hedge funds | 10 - 20% | Medium | Diversification2 | 100% fixed income | N/A |
| Listed real assets and commodities | 3 - 10% | High | Growth Income Diversification2 |
70% equities 30% fixed income |
PDBC MLPTX |
| Digital assets | 0 - 7% | High | Growth Diversification2 |
80% equities 20% fixed income |
BTCO QETH QSOL |
These sample allocations are recommended starting points for how to incorporate an asset class into an alternatives bucket. Of the 13.3% reported optimal allocation to alternatives, the above sample allocations provide percentages for allocating among the alternatives asset classes. BTCO, QETH & QSOL are not registered, do not intend to register or will be required to register, as investment companies under the Investment Company Act; therefore investors will not be provided any protections under such Act.
Get positioning for your equity and fixed income allocations in our monthly Portfolio Playbook.
Alternatives at Invesco
Diversify portfolios with public and private alternative assets to for enhanced return potential and to help mitigate risk.
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For more on how we can partner with you, submit a request for a call back or contact us directly today.
Private real assets outlook and positioning
Commercial real estate: Capital market activity in the US real estate equity market improved meaningfully in 2025, though year-over-year price growth has been mild, and tenant demand continues to adjust to public policy shifts. Historically, income has driven more than 80% of long-term returns in US core and core-plus real estate equity.5 That has tended to decline during periods of strong growth and low interest rates, and rise when growth slowed and rates increased. Today, sweeping changes in US federal policies suggest a shift toward slower economic growth and a steeper yield curve. We believe core and core-plus strategies tend to perform better when focused on assets with higher, sustainable income yields and resilient net operating income (NOI) growth capable of outpacing inflation. Properties with income yields above financing costs and structural growth drivers less tied to the broader economic cycle may perform favorably in the coming years. Higher risk/return strategies may find opportunities in areas where pricing reflects dislocation (e.g., top-tier office), arbitrage (e.g., residential, retail, and medical office buildings [MOBs] in secondary markets with growth comparable to primary markets).
Infrastructure: Our outlook is positive following a correction in valuations, along with strong fundamentals and powerful secular tailwinds, driven primarily by trends in the digital space and their follow-in impacts on power generation and transmission infrastructure. We consider infrastructure a defensive real asset, which fits well into our current favored allocations. Reversal of the Inflation Reduction Act may reduce some capital available for green infrastructure projects . The long-term trend, however, should be supported by expansion in the digital space and improvement in unit economics, which no longer require government subsidy for most projects. Data center and digital infrastructure power demands will likely continue from the artificial intelligence theme, so there’s potential for extra capacity to come from oil and gas sectors. For context, the current estimated demand for data centers may double the capital expenditure seen in prior infrastructure booms like telecom in the late 1990s to early 2000s or shale oil in 2008–2012.
Our view as of January 31, 2026.
Private credit outlook and positioning
Direct lending: We remain overweight in direct lending with all-in yields remaining attractive for senior positioning, especially in the core middle market. Significant private equity dry powder and a backlog of exits point to a continuation of recently improved deal activity, despite competition from the broadly syndicated market. As clarity improves on rates, recession risk, and global tensions, we believe direct lending may potentially continue to offer returns in the high single to low double digits, supported by floating-rate structures, strong demand from private equity sponsors, and a favorable credit outlook.
Distressed debt and special situations: We see opportunities for distressed debt and special situations to provide financing in remaining pockets of stress and uncertainty. Interest is growing in fresh investments and super-senior deals, which are loans with the highest repayment priority, that involve changing the terms, and length, of the agreement. Capital solutions are increasing in volume and quality, driven by longer private equity (PE) holding periods and high base rates. Stress is emerging in loans trading below par (face value), while par credit has remained well bid. If these dynamics persist, there may be attractive risk-adjusted returns for investors who are willing and able to navigate the complexity.
Real asset debt: Real estate capital markets have exhibited resiliency amid the volatility experienced last year, seen in spread compression and commercial mortgage-backed securities (CMBS) issuance volume that has already exceeded levels seen during the past several years. Overall, rate cuts may be beneficial for both lenders and borrowers . It should result in less pressure on credit metrics and more liquid capital markets — particularly for asset classes such as life science and office, which continue to experience headwinds, although office performance varies by market and vintage. In addition to the decreasing cost of leverage , the impact of rate cuts will likely be partially mitigated by interest rate floors for private lenders. Rate cuts are likely to spur transaction activity, driving greater demand for loans and potentially widening spreads — both favorable trends for alternative lenders as the new year starts.
Our view as of January 31, 2026.
Private equity outlook and positioning
We remain underweight private equity, but beneath the surface, we’re beginning to normalize our views on leveraged buyouts versus growth strategies. The reopening of capital markets and aging of dry powder led to a rapid deployment of private equity (PE) capital in the second half of 2025, totaling $1.2 trillion in deal value, near the 2021 $1.3 trillion peak,6 and the second consecutive year of annual growth. Exits have also surpassed recent depressed levels post-2021, giving some much-needed hope for general partners (GPs) looking to return capital to their investors through distributions. In this environment, we believe secondaries will continue to attract meaningful interest from investors as a release valve for those seeking to transact their current stakes. Despite mergers and acquisitions (M&A) activity improving meaningfully, initial public offering (IPO) activity has been suppressed as growth-oriented companies with negative EBITDA (earnings before interest, taxes, depreciation, and amortization) are able to stay private longer. This trend may be a secular dynamic with firms justifiably preferring this to going public if they can continue to gain market share and raise capital.
Our view as of January 31, 2026.
Hedge fund outlook and positioning
Hedge funds had one of their best years since 2009, driven by high base rates and alpha generated from volatile equity and credit markets9. With low correlations to traditional assets7 and the possibility for higher-for-longer interest rates, we believe hedge funds are particularly attractive in today’s volatile markets. Since they operate off a spread, elevated base rates may provide a generous tailwind. We still believe hedge funds are attractive, however, our view is moderating as capital markets reopen and the outlook for stock markets improves.
Our view as of January 31, 2026.
Alpha is the relative measure of performance to an investment's benchmark.
Listed real assets and commodities outlook and positioning
Listed real assets: Artificial intelligence (AI) and the Trump administration’s priority of securing domestic energy production are two major themes. While it’s too early to predict with any confidence, it’s clear that the volume of data center-linked natural gas demand will be material. This AI-driven emerging demand is in addition to the significant and predictable demand growth from the completion of numerous liquefied natural gas export facilities and from other industries. In total, these trends could lead to 28–37 billion cubic feet per day (bcf/d) of additional demand by 2030, a 25%–34% increase.8 While natural gas demand has experienced steady growth historically, the demand drivers have rarely been as visible as they are today.
Commodities: We believe commodities deserve a long-term allocation in portfolios for their diversification potential. It’s extremely difficult to time commodity markets because bullish events can happen rapidly and fiercely. Keeping a constant allocation can serve as a hedge. Into 2026, gold and silver continued to hit new all-time highs due to concerns around geopolitical turmoil10, the debasement trade (based on high global debt debasing currencies), central bank buying for de-dollarization, and Federal Reserve (Fed) independence risk. Copper prices have also surged to an all-time high, driven by a combination of tightening supply and rising demand11. On the supply side, recent mining disruptions have constrained output. Meanwhile, demand is accelerating due to factors such as the AI infrastructure buildout, increased defense spending, US reindustrialization efforts, and concerns over US tariffs. In addition, China, the world’s largest aluminum producer, is nearing its production cap. While Chinese firms are expanding smelting operations in Indonesia, these efforts are unlikely to fully resolve the supply shortfall.
Our view as of January 31, 2026.
Digital assets outlook and positioning
Digital assets shifted notably through 2025 with new buyer cohorts and macro volatility shaping performance. Digital asset treasury companies emerged as major purchasers buying twice as much bitcoin as ETFs in the US, for example, before stepping back in the fourth quarter. October’s macro-driven turmoil triggered the largest deleveraging event in crypto’s history, and sentiment weakened further after the Fed signaled a December pause, slowing buyer momentum into year-end. At the same time, Layer 2 adoption and ongoing Layer 1 efficiency gains weighed on total revenues in major altcoins. Looking to 2026, structural adoption should remain a tailwind as investors continue to “get off zero,” with our continued view that bitcoin benefits from growing investor interest and easier on-ramps. Regulatory clarity — especially around stablecoins — continues to build, while other digital asset trends like tokenization continue to build momentum. And with cryptocurrencies historically benefiting from easier monetary conditions and expanding liquidity, the backdrop is broadly constructive, even if sentiment still awaits a clear catalyst.
Our view as of January 31, 2026.
Layer 1 is the base blockchain where transactions take place.
Layer 2 is an additional layer built on top of the base blockchain to make transactions more efficient.
In general, liquid alternatives, such as commodities, hedge funds, listed real assets, and digitals assets, may make sense for investors who want exposure to alternatives, but still want to easily access this money. Private market assets, such as private credit, private equity, and private real assets, may make sense for investors willing to have less access in exchange for additional return potential, enhanced yield, and diversification. For some, a combination of liquid and private market assets can make sense.
Important information
NA5166267
The yield curve plots interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates.
A yield curve is the shape created by the levels of interest rates at various tenors of a specific fixed income asset.
A basis point is 1/100 of a percentage.
The opinions expressed are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.
Direct lending is represented by Cliffwater Direct Lending Index (CDLI), which seeks to measure the unlevered, gross of fee performance of US middle market corporate loans, as represented by the asset-weighted performance of the underlying assets of Business Development Companies (BDCs), including both exchange-traded and unlisted BDCs.
Private real estate debt is represented by Giliberto-Levy High-Yield Real Estate Debt Index (G-L 2), which measures total return and its components for many forms of high-yield commercial real estate (CRE) debt, such as high-yield commercial mortgage debt performance for high-yield loans, such as mezzanine loans, preferred equity, and B notes.
High yield is represented by Bloomberg US Corporate High Yield Bond Index, which measures the USD-denominated, high yield, fixed-rate corporate bond market
Senior loans are represented by Morningstar LSTA US Leveraged Loan 100 Index, which is designed to measure the performance of the 100 largest facilities in the US leveraged loan market.
Private real estate equity is represented by NCREIF Property Index (NPI) on the basis that it’s the broadest measure of private real estate index returns. The NPI is published by the National Council of Real Estate Investment Fiduciaries and is a quarterly, composite total return (based on appraisal values) for private commercial real estate properties held for investment purposes including fund expenses but excluding leverage and management and advisory fees. NCREIF data reflects the returns of a blended portfolio of institutional quality real estate and does not reflect the use of leverage or the impact of management and advisory fees.
Corporate bonds are represented by Bloomberg U.S. Corporate Value Unhedged USD Index, which measures the investment grade, fixed-rate, taxable corporate bond market. It includes USD denominated securities publicly issued by the US and non-US industrial, utility, and financial issuers.
Commercial mortgage backed securities (CMBS) are represented by Bloomberg US CMBS Investment Grade Index, which measures the market of US agency and US non-agency conduit and fusion CMBS deals with a minimum current deal size of $300 million.
Investment grade bonds are represented by Bloomberg US Aggregate Bond Index, an unmanaged index considered representative of the US investment-grade, fixed-rate bond market.
Treasuries are represented by Bloomberg U.S. Treasury Total Return Unhedged Index, which measures US dollar-denominated, fixed-rate, nominal debt issued by the US Treasury.
US equities are represented by S&P 500 Index, an unmanaged index of the 500 largest stocks, weighted by market capitalization and considered representative of the broader stock market.
An investment cannot be made into an index.
Dry powder is the amount of capital that is committed to a private fund, but not yet deployed into deals or illiquid assets.
Base rates are represented by SOFR (Secured Overnight Financing Rate), which is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities.
The capitalization rate (or cap rate) is the rate of return that's expected to be generated on a real estate investment property.
Beta is a measure of risk representing how a security is expected to respond to general market movements.
Alternative investment products, including hedge funds and private equity, involve a high degree of risk, often engage in leveraging and other speculative investment practices that may increase the risk of investment loss, can be highly illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual funds, often charge high fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager. There is often no secondary market for hedge funds and private equity, and none is expected to develop. There may be restrictions on transferring interests in such investments.
Bitcoins are considered a highly speculative investment due to their lack of guaranteed value and limited track record. Because of their digital nature, they pose risks from hackers, malware, fraud, and operational glitches. Bitcoins are not legal tender and are operated by a decentralized authority, unlike government-issued currencies. Bitcoin exchanges and bitcoin accounts are not backed or insured by any type of federal or government program or bank.
Bitcoin is a digital currency (also called cryptocurrency) that isn’t backed by any country's central bank or government. Bitcoins can be traded for goods or services with vendors who accept bitcoins as payment.
Commodities may subject an investor to greater volatility than traditional securities such as stocks and bonds and can fluctuate significantly based on weather, political, tax, and other regulatory and market developments.
In general, stock values fluctuate, sometimes widely, in response to activities specific to the company as well as general market, economic and political conditions.
Investments in real estate-related instruments may be affected by economic, legal, or environmental factors that affect property values, rents, or occupancies of real estate. Real estate companies, including REITs or similar structures, tend to be small and mid-cap companies and their shares may be more volatile and less liquid.
Spread represents the difference between two values or asset returns.
Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC)
There are risks involved with investing in ETFs, including possible loss of money. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the 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.
The Fund is subject to management risk because it is an actively managed portfolio. The investment techniques and risk analysis used by the portfolio managers may not produce the desired results.
Risks of futures contracts include: An imperfect correlation between the value of the futures contract and the underlying commodity; possible lack of a liquid secondary market; inability to close a futures contract when desired; losses due to unanticipated market movements; obligation for the Fund to make daily cash payments to maintain its required margin; failure to close a position may result in the Fund receiving an illiquid commodity; and unfavorable execution prices.
In pursuing its investment strategy, particularly when "rolling" futures contracts, the Fund may engage in frequent trading of its portfolio securities, resulting in a high portfolio turnover rate.
These comments should not be construed as recommendations, but as an illustration of broader themes. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions; there can be no assurance that actual results will not differ materially from expectations.
Commodity-linked notes may involve substantial risks, including risk of loss of a significant portion of principal and risks resulting from lack of a secondary trading market, temporary price distortions, and counterparty risk.
Swaps are subject to leveraging, liquidity, and counterparty risks, and therefore may be difficult to value. Adverse changes in the value or level of the swap can result in gains or losses that are substantially greater than invested, with the potential for unlimited loss.
Derivatives may be more volatile and less liquid than traditional investments and are subject to market, interest rate, credit, leverage, counterparty, and management risks. An investment in a derivative could lose more than the cash amount invested.
To qualify as a regulated investment company (RIC), the Fund must meet a qualifying income test each taxable year. Failure to comply with the test would have significant negative tax consequences for shareholders. The Fund believes that income from futures should be treated as qualifying income for purposes of this test, thus qualifying the Fund as a RIC. If the IRS were to determine that the Fund’s income is derived from the futures and did not constitute qualifying income, the Fund likely would be required to reduce its exposure to such investments in order to maintain its RIC status.
The Fund’s strategy of investing through its subsidiary in derivatives and other financially-linked instruments whose performance is expected to correspond to the commodity markets may cause the Fund to recognize more ordinary income. Particularly in periods of rising commodity values, the Fund may recognize higher-than-normal ordinary income. Investors should consult with their tax advisor and review all potential tax considerations when determining whether to invest.
Leverage created from borrowing or certain types of transactions or instruments may impair liquidity, cause positions to be liquidated at an unfavorable time, lose more than the amount invested, or increase volatility.
The Fund may hold illiquid securities that it may be unable to sell at the preferred time or price and could lose its entire investment in such securities.
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.
Invesco Dynamic Credit Opportunity Fund (XCRTX)
The Fund is a closed-end management investment company that is operated as an interval fund, and should be considered a speculative, long-term investment of limited liquidity that entails substantial risks, and you should only invest in the Fund if you can sustain a complete loss of your investment. As a result, you may receive little or no return on your investment or may lose part or all of your investment.
The Fund is suitable only for investors who can bear the risks associated with the Fund's limited liquidity. The Fund does not currently intend to list its shares for trading on any national securities exchange. The shares are, therefore, not readily marketable and no market is expected to develop. Liquidity for the shares will be provided only through quarterly repurchase offers between 5% and 25% of the shares at net asset value (NAV), and there's no guarantee that you will be able to sell all of the shares you desire to sell in the repurchase offer. As a result, you should consider an investment in the Fund to be of limited liquidity.
There is no assurance that annual distributions paid by the Fund will be maintained at the targeted level or that dividends will be paid at all. Although the Fund does not intend to use offering proceeds to fund distributions, the Fund's distributions may be funded from unlimited amounts of offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available to the Fund for investment. Any capital returned to shareholders through distributions will be distributed after payment of fees and expenses.
Derivatives may be more volatile and less liquid than traditional investments and are subject to market, interest rate, credit, leverage, counterparty, and management risks. An investment in a derivative could lose more than the cash amount invested.
There are risks associated with borrowing or issuing preferred shares, including that the costs of the financial leverage exceed the income from investments made with such leverage, the higher volatility of the net asset value of the common shares, and that fluctuations in the interest rates on the borrowing or dividend rates on preferred shares may affect the yield and distributions to the common shareholders. Use of leverage also may impair the Fund's ability to maintain its qualification for federal income taxes as a regulated investment company.
The risks of investing in securities of foreign issuers, including emerging markets, can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
Junk bonds involve a greater risk of default or price changes due to changes in the issuer’s credit quality. The values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods.
Leverage created from borrowing or certain types of transactions or instruments may impair the fund’s liquidity, cause it to liquidate positions at an unfavorable time, or lose more than it invested, increase volatility, or otherwise not achieve its intended objective.
The Fund is a closed-end investment company designed primarily for long-term investors and not as a trading vehicle. While there is no restriction on transferring the shares, the Fund does not intend to list the shares for trading on any national securities exchange. There is no secondary trading market for shares. An investment in the shares is illiquid. There is no guarantee that you will be able to sell all of the shares that you desire to sell in any repurchase offer by the Fund.
There is less readily available, reliable information about most senior loans than there is for many other types of securities. In addition, there is no minimum rating or other independent evaluation of a borrower or its securities limiting the Fund's investments, and the advisor relies primarily on its own evaluation of borrower credit quality rather than on any available independent sources.
Senior loans, like most other debt obligations, are subject to the risk of default. Default in the payment of interest or principal on a senior loan will result in a reduction in income to the Fund, a reduction in the value of the senior loan and a potential decrease in the Fund’s net asset value. The risk of default will increase in the event of an economic downturn or a substantial increase in interest rates.
The Fund is non-diversified and may experience greater volatility than a more diversified investment.
The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the Fund.
Invesco Galaxy Bitcoin ETF
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.
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.
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, restrict the use of bitcoin, 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 the net asset value (NAV).
The price of bitcoin may be impacted by the behavior 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 slows 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 (1940 Act) or the protections afforded by the Commodity Exchange Act (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.
QETH - Invesco Galaxy Ethereum ETF
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.
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 Funds investments in bitcoin 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 Funds 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 the net asset value (NAV).
The price of ether may be impacted by the behavior 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.
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 Funds 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.
Invesco Galaxy Solana ETF
SOL spot trading venues are not subject to the same regulatory oversight as traditional equity exchanges.
Solana transactions are irrevocable and stolen or incorrectly transferred SOL may be irretrievable. As a result, any incorrectly executed bitcoin transactions could adversely affect an investment in the Trust.
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.
SOL 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 SOL could decline rapidly, including to zero.
The Trust seeks to stake substantially all of its SOL which may involve the temporary loss of the ability to transfer or otherwise dispose of the Trust’s SOL. Investors could experience delays or limitations on redemptions if the Trust is unable to unstake the necessary amount of SOL in time to satisfy its current obligations.
In consideration for any staking activity, the Trust would receive certain staking rewards of SOL tokens, which may be treated as income to the Trust. The amount of SOL the Trust may receive as reward for tis staking activity can vary significantly. Staking activity comes with a risk of loss of SOL. The Trust may also be subject to “slashing” penalties which may occur when a validator attests to two different histories of the chain.
The Solana protocol introduced the Proof-of-History (PoH) timestamping mechanism. PoH is a new blockchain technology that is not widely used. PoH may not function as intended. Additionally there may be flaws in the cryptography underlying PoH.
The further development and acceptance of the Solana 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 SOL and therefore an investment in the Shares.
Currently, there is relatively limited use of SOL 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 Solana or restrict the use of SOL or the operations of the Solana network or venues on which SOL trades. For example, it may become difficult or illegal to acquire, hold, sell or use SOL in one or more countries, which could adversely impact the price of SOL.
In the past, flaws in the source code for Solana have been discovered, including those that resulted in the theft of users’ SOL. 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 Solana 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 SOL may be impacted by the behaviour of a small number of influential individuals or companies.
The Solana 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 SOL and other digital assets.
Prices of SOL may be affected due to stablecoins, the activities of stablecoin users and their regulatory treatment.
A temporary or permanent “fork” in the Solana network could adversely affect an investment in the Shares.
A disruption of the internet may affect the use of Solana 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 SOL 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.
