Invesco Ltd. (NYSE: IVZ), a prominent global investment management firm, has partnered with Galaxy Asset Management to unveil the Invesco Galaxy Bitcoin ETF (NYSE Arca: BTCO), marking its commencement of trading on the Cboe BZX Exchange today. This exchange-traded fund offers investors a gateway to bitcoin‘s market price performance, tracked by the Lukka Prime Bitcoin Reference Rate.
To incentivize early adoption, Invesco has decided to waive the entire management fee for BTCO during the initial six months, applicable to assets up to $5 billion. This move results in a zero basis points total expense ratio during the specified period, with the company retaining the discretion to extend this fee waiver.
Brian Hartigan, the Global Head of ETFs Investments at Invesco, underscored the significance of the collaboration with Galaxy Asset Management, identifying it as a pivotal factor differentiating BTCO. He emphasized the unique blend of ETF innovation and digital asset expertise brought to the table by the partnership. Steve Kurz, Global Head of Galaxy Asset Management, echoed these sentiments, highlighting the advantages of their collaboration, which draws on their collective experience in managing crypto ETPs across international markets and their firsthand involvement with a cash create bitcoin ETF in Canada.
BTCO’s bitcoin holdings are securely stored through an institutional-grade custody agreement with Coinbase (NASDAQ: COIN). This ETF structure aims to mitigate the operational challenges associated with direct bitcoin investments, including custodial responsibilities and security concerns.
Galaxy Asset Management, an entity independent of Invesco, acts as the execution agent for BTCO, overseeing the buying and selling of bitcoin for cash. Renowned for its conservative, fiduciary-first approach, the firm currently manages assets totaling $5.3 billion as of November 30, 2023.
