Invesco and Galaxy Digital have announced their plans to launch a spot Ethereum exchange-traded fund (ETF), following the trend of asset managers exploring digital asset products. The ETF, called Invesco Galaxy Ethereum ETF, has been filed by the two asset managers. The fund will reflect the performance of the spot price of ether by holding units of the cryptocurrency with a separate custodian, who is yet to be identified.
Invesco is the sponsor of the ETF, while Galaxy Digital will serve as the execution agent and sell ETH to cover the trust’s expenses. The SEC has extended the deadline for decisions on previous applications for spot ETH ETFs. Additionally, futures-based ETH ETFs are expected to become available as early as next week, with investment firms preparing to add ETH futures vehicles to their portfolios. The SEC has expressed concern over market manipulation and investors’ vulnerability, but there is optimism for future ETH ETFs receiving approval.
Futures ETFs would invest directly in futures contracts traded on the CME, giving investors protection against price manipulation. Reports suggest that the SEC may approve Ether futures ETFs in early October. The positive market sentiment surrounding the introduction of futures ETFs has driven Ether’s price to around $1,600.
