ETP Digital assets: Easy investor access to blockchain and crypto
Key takeaways
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A growing asset class:
Digital assets have reached meaningful scale and are increasingly important for investors, supported by growing adoption and expanding infrastructure.
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Practical, familiar access:
Exchange‑traded products (ETPs) provide a secure, efficient, and exchange‑listed way for investors to gain exposure to digital assets, without the operational complexity of direct ownership.
Digital assets are emerging as a viable alternative asset class, offering investors new ways to diversify portfolio risk and return. What began with cryptocurrencies has expanded into a broader ecosystem that include companies supporting digital asset markets, from infrastructure and technology providers to firms enabling participating and adoption across the economy.
Today, digital assets extend beyond the blockchain technology that first enabled them. As more assets and activity move on-chain, the ecosystem continues to evolve, supported by a growing network of companies involved in areas such as mining, hardware, software, and market infrastructure.
As access to cryptocurrencies and digital assets continues to expand, Invesco provides simplified pathways through its digital asset ETPs offerings. These solutions offer exposure to established cryptocurrencies as well as to innovative companies connected to the broader digital asset ecosystem. For investors interested in the potential role digital assets may play in portfolios, Invesco’s suite of products helps reduce the complexity of navigating this rapidly developing space.
Investing in digital assets: Three questions investors often ask
As digital assets continue to evolve, investors are increasingly evaluating how this emerging asset class may fit within diversified portfolios. Below are three common questions we hear, and how investors are approaching them.
1. Why do investors add cryptocurrency exposure to their portfolios?
A growing opportunity set
Digital assets are playing an expanding role in the global economy. Large well‑known companies are increasingly using blockchain‑based solutions, including stablecoins for payments and settlement, and governments are exploring the strategic role of cryptocurrencies. This growing adoption has led many investors to view digital assets as a potential long‑term opportunity within diversified portfolios.
What are cryptocurrency’s major milestones?
| Year | Event |
|---|---|
| 2009: |
The first cryptocurrency, bitcoin, is invented by the anonymous “Satoshi Nakamoto.“ |
| 2010: | The first known real-world transaction using bitcoin took place on May 22, when 10,000 bitcoins were exchanged for two pizzas. This is now celebrated as Bitcoin Pizza Day. |
| 2012: | European regulators permit bitcoin use. |
| 2014: | Microsoft and PayPal accept bitcoin as payment in limited uses. |
| 2015: | Ether, the second-largest cryptocurrency by market cap today, goes live on the Ethereum platform. |
| 2017: | Japan passes a law accepting bitcoin as a legal payment; CME launches bitcoin futures. |
| 2018: | Samsung begins manufacturing chips for mining cryptocurrencies. |
| 2020: | PayPal permits users to transact in bitcoin. |
| 2021: | El Salvador announces that businesses must accept bitcoin as legal tender. |
| 2022: | Ethereum’s transaction validation method shifts from “Proof-of-Work“ to “Proof-of-Stake,“ which aims to address sustainability concerns and increase transaction throughput from 15 transactions per second to thousands per second. |
| 2023: | In August, Grayscale won its lawsuit against the SEC, overturning the commission’s rejection to convert the Grayscale bitcoin trust (GBTC) into a spot ETF. |
| 2024: | US Securities and Exchange Commission (SEC) approves the listing and trading of spot ETPs like the Invesco Galaxy Bitcoin ETF (BTCO) and the Invesco Galaxy Ethereum ETF (QETH). In December, bitcoin crossed the $100,000 mark, spurred by US regulatory optimism following Donald Trump’s win in the presidential election. |
| 2025: | In January, the SEC rescinded SAB 121, which posed strict requirements on publicly traded institutions that custody digital assets, preventing most banks from participating in the digital assets ecosystem. In March, the US established both a strategic bitcoin reserve (SBR) and a US digital asset stockpile under President Trump’s Strengthening American Leadership in Digital Financial Technology Executive Order. The White House also hosted its first Digital Assets Summit in history. In May, bitcoin surged to an all-time high of $111k, continuing to be fueled by strong ETP demand and regulatory optimism in the US. |
BTCO is not an investment company registered under the Investment Company Act of 1940 (“1940 Act”). That shares of the Trust are not subject to the same regulatory requirements as mutual funds. As a result, shareholders of BTCO do not have the protections associated with ownership of shares in an investment company registered under the 1940 Act.
Source: Invesco and CoinMarketCap as of 6/27/2025
Source: Cambridge University, Crypto Climate Accord. Statista, September 2021
Potential hedge against inflation
Many investors are attracted to supply capped cryptocurrencies such as bitcoin, because cryptocurrency can have a build-in finite supply; for example there will only ever be 21 million bitcoins mined. Unlike a fiat currency issued by central banks more bitcoin can’t be printed, the supply limit is hard coded. Because of this, digital assets with a finite supply in circulation may have the potential to hedge a portfolio against inflation, potentially like gold. Other cryptocurrencies, such as ETH and SOL, have an uncapped supply, but can help offset dollar inflation by generating yield from staking rewards (using cryptocurrencies to help the network function securely). Investors should understand the attributes of individual cryptocurrencies and properly research them, before investing.
Diversification Potential
Cryptocurrencies may provide diversification benefits when included in a portfolios of stocks, bonds, and other traditional assets. While volatility can be higher and correlations have varied over time, many investors consider digital assets as a potential source of diversification when thoughtfully sized within a broader portfolio.
2. Why are some investors hesitant to invest in digital assets?
Digital assets, including cryptocurrencies such as bitcoin, ethereum, and solana, can experience periods of price volatility, which may raise concerns around price predictability for investors accustomed to more established asset classes. In addition, direct ownership introduces operational considerations, such as safeguarding private keys, managing digital wallets, and navigating transaction costs that can vary based on network activity.
These considerations are important, but they also highlight why many investors focus not only on the asset class itself, but on how they access it. A clearer understanding of the evolving market and regulatory landscape can help investors better assess both the risks and potential opportunities associated with digital assets. In addition, accessing digital assets through professionally managed investment vehicles allows investors to rely on institutional‑grade custody, security, and infrastructure, helping to reduce operational complexity while maintaining exposure to the asset class.
3. Ways to invest in cryptocurrencies and the digital asset ecosystem
Investors can access cryptocurrencies and digital assets in several ways, each with different levels of complexity, risk, and involvement.
Direct ownership
Investors can purchase cryptocurrencies directly through exchanges or on-chain wallets. While this approach provides direct exposure, it requires hands‑on management of private keys, digital wallets, and transaction fees, as well as ongoing attention to security and operational considerations.
Derivate exposure
Access to cryptocurrencies via brokers to enter positions using derivative instruments such as futures. Requires a degree of familiarity with understanding derivatives, margin management and pricing considerations.
Exchange-traded products (ETPs)
Cryptocurrency ETPs offer a more familiar way to access digital assets. These products invest directly in cryptocurrencies while professional managers handle custody, security, and operational infrastructure. ETPs trade on recognized exchanges, can be held alongside traditional investments, and allow investors to gain exposure without managing wallets or private keys themselves.
Exposure to the broader digital asset ecosystem
Beyond cryptocurrencies, investors can also gain exposure through ETPs that invest in companies involved in blockchain technology, digital asset infrastructure, and related services. This approach allows investors who might not be comfortable getting direct cryptocurrency exposure to still include the overall digital assets ecosystem in their investment mix.
Because the digital asset ecosystem spans multiple technologies, business models, and use cases, building diversified exposure independently can be complex and time‑consuming. Invesco’s digital asset‑focused ETPs are designed to simplify access, offering efficient, exchange‑listed solutions that provide exposure to both cryptocurrencies and the companies supporting their growth, all within well‑known investment vehicles.
Invesco digital asset ETPs: Simplified access to unique opportunities
Blockchain, cryptocurrency, and other digital assets are influencing innovation across the global economy. At Invesco, we believe investors should have an array of tools to easily access and create a diversified exposure to this evolving space. That’s why we partnered with Galaxy to develop a suite of Invesco digital asset ETPs.
Galaxy brings deep expertise across digital assets, crypto markets, and blockchain technology, while Invesco provides established investment and ETF capabilities. Together, we offer strategies designed to help investors access this emerging asset class with greater confidence, efficiency, and clarity.
Consider adding digital assets to your portfolio
Are you looking for investment opportunities related to cryptocurrencies or exposure to the broader blockchain ecosystem? Invesco offers a suite of digital asset ETPs designed to provide simplified, diversified access through familiar, exchange-listed venhicles..
Invesco Galaxy Bitcoin ETF (BTCO)2
Designed to help investors get convenient exposure to the world’s largest cryptocurrency.
Invesco Galaxy Ethereum ETF (QETH)
Provides investors with direct exposure to ether — Ethereum's native currency — with increased transparency, liquidity, and oversight.
Invesco Galaxy Solana ETF (QSOL)
Provides direct exposure to solana, a high‑performance blockchain network, with the potential to participate in staking rewards.
Invesco Alerian Galaxy Cry pto Economy ETF (SATO)
Targets key segments of the crypto economy—miners, enabling technologies, buyers and crypto trusts, and exchange-traded products.
Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC)
Accesses same key segments as the Invesco Alerian Galaxy Crypto Economy ETF (SATO), but adds exposure to companies that use blockchain technology.
Together, these ETPs allow investors to tailor digital asset exposure based on their objectives, whether seeking direct cryptocurrency exposure or participation in the broader ecosystem supporting blockchain innovation.
Source: Invesco as of 6/30/24. For illustrative purposes only.
Invesco digital asset ETPs: Efficient exposure to an emerging asset class
Digital assets are a dynamic, growing asset class that’s constantly evolving as consumers, companies, and institutions find more ways to use blockchain and cryptocurrencies. Their rapid expansion highlights the value of considering broad, diversified exposure to digital assets.
In 2024, Invesco partnered with Galaxy to launch the Invesco Galaxy Bitcoin ETF (BTCO) and Invesco Galaxy Ethereum ETF (QETH). Invesco is a global ETF franchise with a diverse selection of 200+ forward-thinking ETPs. Galaxy is a digital asset and blockchain leader with a wealth of traditional finance expertise and deep crypto know-how. The combined experience informs BTCO and QETH, which provide bitcoin and Ethereum exposure respectively while helping to mitigate the risk of managing personal digital wallets and dealing with unregulated crypto platforms. Both ETPs seek to reflect the spot price performance of their respective cryptocurrency by holding the actual coins in institutional-grade digital storage.
In 2021, Invesco launched two equity-based digital asset ETPs, the Invesco Alerian Galaxy Crypto Economy ETF (SATO) and the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BKLC). SATO and BKLC give investors access to stocks of crypto and blockchain-related companies.
Whether you’re looking for investment opportunities related to cryptocurrencies or exposure to the broader blockchain ecosystem, Invesco offers tools for diversifying your portfolio.
Want to learn more about BTCO, QETH, SATO, BKLC, and other digital asset ETPs? Read Access blockchain and cryptocurrency exposure with ETF simplicity
Related insights
Risks
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Image: Andriy Onufriyenko / Getty
Invesco is not affiliated with Galaxy or Alerian.
Companies engaged in the development, enablement and acquisition of blockchain technologies are subject to a number of risks. Blockchain technology is new and many of its uses may be untested. There is no assurance that widespread adoption will occur. The extent to which companies held by the Fund utilize blockchain technology may vary.
As blockchain technology is new, there is a risk that companies developing applications of this technology may be subject to additional risks including, but not limited to, intellectual property claims and legal action. Furthermore, blockchain technology may be subject to future law and regulation that may adversely impact adoption.
Companies transacting on the blockchain are required to manage a user’s account (or “wallet”) which is accessed via cryptographic keys. Mismanagement, theft, or loss of the keys can adversely affect the companies operations on the blockchain.
Blockchain technology relies on the internet, the disruption of which may adversely affect companies involved with the technology or even the blockchain itself.
The price of a digital currency could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in a digital currency network or a change in user preference to competing cryptocurrencies.
Cryptocurrencies trade on exchanges, which are largely unregulated and, therefore, are more exposed to fraud and failure than established, regulated exchanges for securities, derivatives and other currencies.
Currently, there is relatively limited use of cryptocurrency in the retail and commercial marketplace, which contributes to price volatility.
QETH and BTCO Risks
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.
BTCO Risks
See the prospectus for more information.
The Fund is is highly speculative, the underlying holding is very volatile, and the investment is not suitable for all investors.
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.
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.
QETH Risks
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 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 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 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 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.
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