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January 11, 2024 - Invesco Ltd. in collaboration with Galaxy Asset Management, one of the world's most prominent digital asset and blockchain investment managers, today announced the debut of the Invesco Galaxy Bitcoin ETF (BTCO). This new ETF, which begins trading on the Cboe BZX Exchange, offers direct investment in physical bitcoin, tracking its market price as measured by the Lukka Prime Bitcoin Reference Rate. The integration of this ETF into the market eliminates many barriers traditionally associated with bitcoin investing.
In an unprecedented move, Invesco is waiving BTCO's entire fee on assets up to $5 billion for the first six months following its launch, reducing the total expense ratio from 39 basis points to zero, with the option to extend this waiver further.
Brian Hartigan, Global Head of ETFs Investments at Invesco, shared his insights on the launch, “Through our partnership with Galaxy, the physically backed BTCO ETF benefits from an unparalleled level of combined knowledge and experience in ETF innovation and digital asset expertise. We have a high conviction that digital assets have the potential to be a transformative asset class and believe bringing BTCO into a fully transparent and regulated market truly helps to further democratize the asset class."
Steve Kurz, Global Head of Galaxy Asset Management, emphasised the unique aspects of the BTCO ETF: “What sets the BTCO ETF apart from other similar products is the partnership between Invesco and Galaxy. Our collective experience managing crypto ETPs in Canada, Brazil, and Europe, and, more specifically, our direct experience managing a cash create bitcoin ETF in Canada has been instrumental in developing a product with low fees, strong liquidity, and minimal tracking error."
BTCO uses the Lukka Prime Bitcoin Reference Rate to assess the fair market value of its bitcoin holdings. Lukka Inc., an independent third-party digital asset data company, ensures accuracy and integrity in its evaluations of various bitcoin exchanges, adhering to institutional data quality standards.
Investors of BTCO benefit from the ease of trading through a familiar investment vehicle on a major exchange, devoid of the complexities typically associated with direct bitcoin ownership, such as custodial and security responsibilities. The ETF’s bitcoin holdings are securely stored through a custody agreement with Coinbase, ensuring institutional-grade safeguarding.
Galaxy Digital, under the leadership of founder Michael Novogratz, boasts $5.3 billion in AUM and has been a pioneer in digital asset and blockchain-focused funds. Invesco, managing over $430 billion in AUM, has a history of innovating within the ETF space, introducing first-of-their-kind products to the market.
For more information on the Invesco Galaxy Bitcoin ETF, the full prospectus can be accessed here.
