Invesco Partners With Galaxy Digital To Launch Series Of Crypto ETFs

Leading U.S. asset manager Invesco Ltd. IVZ has teamed up with Mike Novogratz’s digital asset management firm Galaxy Digital Holdings Ltd BRPHF to develop a set of crypto-based ETFs.

What Happened: In a regulatory filing with the Securities and Exchange Commission (SEC) on Tuesday, Invesco and Galaxy Digital unveiled the Invesco Galaxy Bitcoin ETF, an exchange-traded fund that, if approved, will track the performance of Bitcoin BTC/USD while trading like a stock.

"Invesco has a long history of using ETFs to democratize investor access to disruptive, innovative asset classes. Now, through our partnership with market leader Galaxy Digital, we are able to incorporate their expertise of blockchain technology, digital assets and cryptocurrency into our product capabilities," said John Hoffman, head of Americas, ETFs and Indexed Strategies at Invesco, in a press release.

"This combination of complementary strengths will help clients safely and prudently navigate this exciting new asset class to help meet their desired investment outcomes," he added.

The firms said this new strategic partnership would be in aid of developing a comprehensive suite of U.S.-listed, "physically-backed" digital asset exchange-traded funds.

Invesco has more than $471 billion in assets under management, a figure that has doubled over the course of three years. Galaxy Digital has a considerably smaller AUM of $2.1 billion but is a first mover and leader in digital asset and blockchain funds.

Price Action: At press time Thursday afternoon, Bitcoin was trading at $44,738.19, up 2.67%, and Ethereum was trading at $3,153, up 4.06%

Photo: Luca Colapinto on Unsplash