Invesco, Galaxy float latest spot ether ETF proposal

The ETF giant and crypto-native firm forged a partnership in 2021 before filing for a spot bitcoin ETF in June

September 29, 2023 12:29 pm

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Invesco is the latest fund group to pursue an ETF that would hold ether directly.

The fund giant, which manages nearly $1.6 trillion in assets, shared plans for its Invesco Galaxy Ethereum ETF in a Friday filing.

Galaxy Digital Funds is set to to serve as execution agent for the proposed ETF and facilitate the sale of ether by the trust, the disclosure notes.

Unlike various ether futures ETFs expected to launch in the coming days, the Invesco Galaxy Ethereum ETF would hold ether directly — mirroring other proposals made this month.

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Ark Invest and 21Shares revealed plans for a spot ether ETF on Sept. 6. VanEck, which first filed for a spot ether ETF in 2021, also has an active filing in front of the US Securities and Exchange Commission, while Hashdex seeks a fund that would blend ether futures and spot ether exposures.

People familiar with the filing by Ark Invest and 21Shares said recent developments suggested it was an opportune moment to start expanding conversations around ether products. That disclosure came about a week after Grayscale Investments won a court case against the SEC in what many segment watchers called a victory for the broader crypto space.

Invesco is not new to the digital assets realm.

Perhaps best known for its QQQ ETF that invests in Nasdaq 100 companies, Invesco partnered with Galaxy Digital in September 2021 to create physically backed crypto ETFs.

“We believe the combination of an institutional, crypto native asset management business alongside a global ETF pioneer will drive the entire crypto space forward,” Steve Kurz, Galaxy’s head of asset management, said at the time.

Invesco was among the fund groups that filed for a spot bitcoin ETF in June just days after asset management giant BlackRock jumped into the race.

Though spot crypto ETFs trade in a number of other countries, the SEC has never allowed such funds to launch in the US. The securities regulator on Tuesday extended its deadline to rule on the Ark 21Shares Bitcoin ETF to Jan. 10.

Spokespeople for Invesco and Galaxy declined to comment.

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