Cryptocurrencies have recently been in the news, and you may be wondering why. I see three key reasons why digital assets are part of the global narrative and what you should be paying attention to, particularly when considering an allocation.
1. First major cryptocurrency legislation — the GENIUS Act
The passing of the first major cryptocurrency legislation, the Guiding and Establishing National Innovation for US Stablecoins Act, or the GENIUS Act, has helped give world legitimacy to crypto. Stablecoins, a type of cryptocurrency, are tied to stable assets like the US dollar or gold. They aim to be less volatile than other digital assets like bitcoin, so they can be used for typical financial transactions. Since the majority of stablecoins are generated on the Ethereum network, the passage of the GENIUS Act boosted prices of the Invesco Galaxy Ethereum ETF, or QETH, by 59% between July 2 and July 28.
2. President Trump’s embrace of crypto
President Trump’s embrace of the industry has put digital assets in the spotlight. He has an AI and crypto czar, David Sacks, and has filled many key roles in his administration with crypto-friendly appointments. President Trump also created a strategic bitcoin reserve, similar to the strategic petroleum reserves or SPR for the energy business and a US digital assets stock pile. The administration’s support of digital assets has helped bitcoin prices reach several all-time highs, with the most recent being almost $123,000. The Invesco Galaxy Bitcoin ETF, BTCO, increased 75% since the November 4 election.
3. Best performing asset class for many years
Bitcoin has been the best performing asset class in eight of the past 10 years and year-to-date is in the lead for 2025. Full disclosure, in the two years when it wasn’t the best, it was the worst performing asset with large moves down. The volatility of bitcoin, however, has decreased substantially due to its widespread adoption. Over the past 10 years, the 90-day volatility has gone from 117% to approximately 30%.1
It can be challenging to learn about a new asset class when the existing ones are already keeping investors busy. The hardest part can be just getting off a zero allocation. A comfort level and understanding of crypto can make a difference. Invesco, and our partner Galaxy, are here to help.
Important Information
Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by any Federal Government Agency
1. All data backed by Bloomberg as July 28 2015 – July 28 2025 unless otherwise stated.
Performance as at June 30, 2025 |
YTD |
1Y |
3Y |
5Y |
10Y |
Fund inception
|
Invesco Galaxy Ethereum ETF - NAV |
-24.78 |
|
|
|
|
-27.46
|
Invesco Galaxy Ethereum ETF - market price |
-24.74
|
|
|
|
|
-27.37
|
Underlying index |
-24.67 |
-26.5 |
35.13 |
62.09 |
|
-27.27 |
Performance as at June 30, 2025 |
YTD |
1Y |
3Y |
5Y |
10Y |
Fund inception
|
Invesco Galaxy Ethereum ETF - NAV |
15.24 |
79.32 |
|
|
|
77.36
|
Invesco Galaxy Ethereum ETF - market price |
15.27
|
79.28 |
|
|
|
77.29
|
Underlying index |
15.38 |
74.00 |
79.24 |
64.14 |
83 |
77.33 |
Past performance is not a guarantee of future results; current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. See invesco.com to find the most recent month-end performance numbers. Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times. Fund performance reflects fee waivers, absent which performance data quoted would have been lower. An investment cannot be made directly into an index. Index returns do not represent fund returns
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.
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 opinions expressed are those of Invesco, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.
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.
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, 75,000, 80,000, 100,000, or 150,000 Shares.
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.
Regulatory changes or actions may alter the nature of an investment in bitcoin or restrict the use of bitcoin/ether or the operations of the Bitcoin/Ethereum network or venues on which bitcoin/ether trades. For example, it may become difficult or illegal to acquire, hold, sell or use bitcoin/ether in one or more countries, which could adversely impact the price of bitcoin/ether.
The Trust’s returns will not match the performance of bitcoin/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.
Competition from central bank digital currencies (“CDBCs”) and other digital assets could adversely affect the value of bitcoin/ether and other digital assets.
Prices of bitcoin/ether may be affected due to stablecoins, the activities of stablecoin users and their regulatory treatment.
A temporary or permanent “fork” in the blockchain/Ethereum network could adversely affect an investment in the Shares.
A disruption of the internet may affect the use of bitcoin/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 bitcoin/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 bitcoin/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.
Bitcoin/ether spot trading venues are not subject to the same regulatory oversight as traditional equity exchanges.
BTCO
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.
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.
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.
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.
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”).
Intellectual property rights claims may adversely affect the operation of the Bitcoin network.
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 the price of bitcoin.
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
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 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.
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 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.
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 Distributors, Inc. 8/25 NA 4702826
Cryptocurrencies have recently been in the news, and you may be wondering why. I see three key reasons why digital assets are part of the global narrative and what you should be paying attention to, particularly when considering an allocation.
The passing of the first major cryptocurrency legislation, the Guiding and Establishing National Innovation for US Stablecoins Act, or the GENIUS Act, has helped give world legitimacy to crypto. Stablecoins, a type of cryptocurrency, are tied to stable assets like the US dollar or gold. They aim to be less volatile than other digital assets like bitcoin, so they can be used for typical financial transactions. Since the majority of stablecoins are generated on the Ethereum network, the passage of the GENIUS Act boosted prices of the Invesco Galaxy Ethereum ETF, or QETH, by 59% between July 2 and July 28.
President Trump’s embrace of the industry has put digital assets in the spotlight. He has an AI and crypto czar, David Sacks, and has filled many key roles in his administration with crypto-friendly appointments. President Trump also created a strategic bitcoin reserve, similar to the strategic petroleum reserves or SPR for the energy business, and a US digital assets stock pile. The administration’s support of digital assets has helped bitcoin prices reach several all-time highs, with the most recent being almost $123,000. The Invesco Galaxy Bitcoin ETF, BTCO, increased 75% since the November 4 election.
Bitcoin has been the best performing asset class in eight of the past 10 years and year to date is in the lead for 2025. Full disclosure, in the two years when it wasn’t the best, it was the worst performing asset with large moves down. The volatility of bitcoin, however, has decreased substantially due to its widespread adoption. Over the past 10 years, the 90-day volatility has gone from 117% to approximately 30%.1
It can be challenging to learn about a new asset class when the existing ones are already keeping investors busy. The hardest part can be just getting off a zero allocation. A comfort level and understanding of crypto can make a difference. Invesco, and our partner Galaxy, are here to help.
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.
Ethereum is a blockchain that acts like a global computer through which anyone can deploy or interact with software such as financial services and games.
Investing in tax-efficient ETFs can reduce capital gains taxes and help you keep more of what you earn.
No one wants an investment to lose money. When it happens, tax-loss harvesting can help lower your tax bill in three easy steps.
Important Information
NA4702826
Past performance is not a guarantee of future results; current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. See invesco.com to find the most recent month-end performance numbers. Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times. Fund performance reflects fee waivers, absent which performance data quoted would have been lower. An investment cannot be made directly into an index. Index returns do not represent fund returns
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.
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 opinions expressed are those of Invesco, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.
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.
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, 75,000, 80,000, 100,000, or 150,000 Shares.
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.
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.
Regulatory changes or actions may alter the nature of an investment in bitcoin or restrict the use of bitcoin/ether or the operations of the Bitcoin/Ethereum network or venues on which bitcoin/ether trades. For example, it may become difficult or illegal to acquire, hold, sell or use bitcoin/ether in one or more countries, which could adversely impact the price of bitcoin/ether.
The Trust’s returns will not match the performance of bitcoin/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.
Competition from central bank digital currencies (“CDBCs”) and other digital assets could adversely affect the value of bitcoin/ether and other digital assets.
Prices of bitcoin/ether may be affected due to stablecoins, the activities of stablecoin users and their regulatory treatment.
A temporary or permanent “fork” in the blockchain/Ethereum network could adversely affect an investment in the Shares.
A disruption of the internet may affect the use of bitcoin/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 bitcoin/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 bitcoin/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.
Bitcoin/ether spot trading venues are not subject to the same regulatory oversight as traditional equity exchanges.
BTCO
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.
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.
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.
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.
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”).
Intellectual property rights claims may adversely affect the operation of the Bitcoin network.
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 the price of bitcoin.
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
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 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.
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 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.
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 Distributors, Inc.
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