Invesco Galaxy Ethereum ETF (QETH) Files Q2 2024 10-Q

TL;DR

QETH 10-Q filed: Seed shares issued June 17, creation baskets July 8. Ethereum & USD involved.

AI Summary

The Invesco Galaxy Ethereum ETF (QETH) filed its 10-Q for the period ending June 30, 2024. The filing details the ETF's operations and financial status. Notably, the ETF experienced significant activity around the issuance of initial seed shares on June 17, 2024, and subsequent events related to creation baskets on July 8, 2024, involving Ethereum and USD.

Why It Matters

This filing provides crucial insights into the operational and financial health of a major Ethereum-focused ETF, impacting investors interested in digital asset exposure.

Risk Assessment

Risk Level: medium — The ETF's performance is directly tied to the volatile cryptocurrency market, specifically Ethereum, and regulatory changes impacting digital assets.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the fiscal quarter covered by the report.)
• 20240829 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Invesco Galaxy Ethereum ETF (company) — Filer of the 10-Q report
• Ethereum (company) — Underlying asset of the ETF
• USD (dollar_amount) — Currency involved in creation baskets
• June 17, 2024 (date) — Date of initial seed shares issuance
• July 8, 2024 (date) — Date of subsequent events related to creation baskets

FAQ

Filing Documents

• qeth-20240630.htm (10-Q) — 310KB
• qeth-ex31_1.htm (EX-31.1) — 13KB
• qeth-ex31_2.htm (EX-31.2) — 13KB
• qeth-ex32_1.htm (EX-32.1) — 8KB
• qeth-ex32_2.htm (EX-32.2) — 8KB
• 0000950170-24-101684.txt ( ) — 1552KB
• qeth-20240630.xsd (EX-101.SCH) — 285KB
• qeth-20240630_htm.xml (XML) — 77KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 8 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 10 ITEM 4.

Controls and Procedures

Controls and Procedures 10 PART II. OTHER INFORMATION 10 Item 1.

Legal Proceedings

Legal Proceedings 10 Item 1A.

Risk Factors

Risk Factors 10 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 10 Item 3. Defaults Upon Senior Securities 10 Item 4. Mine Safety Disclosures 10 Item 5. Other Information 10 Item 6. Exhibits 11

FI NANCIAL INFORMATION

PART I. FI NANCIAL INFORMATION

FINANC IAL STATEMENTS

ITEM 1. FINANC IAL STATEMENTS. Invesco Galaxy Ethereum ETF June 30, 2024 (Unaudited) June 30, 2024 Assets Cash held by custodian $ 100,000 Total Assets $ 100,000 Liabilities Total Liabilities $ — Commitments and Contingencies (Note 6) Net Assets $ 100,000 Shares outstanding 4,000 Net asset value per share $ 25.00 See accompanying Notes to Unaudited Financial Statements which are an integral part of the financial statements. 1 Invesco Galaxy Ethereum ETF For the Period June 17, 2024 to June 30, 2024 (Unaudited) Shares Total Shares Total Equity Shareholder's Equity Balance at June 17, 2024 — $ — $ — Purchases of Shares 4,000 100,000 100,000 Redemption of Shares — — — Net Increase (Decrease) due to Share Transactions 4,000 100,000 100,000 Net Income (Loss) Net Investment Income (Loss) — — Net Realized Gain (Loss) on Ether — — Net Change in Unrealized Gain (Loss) on Ether — — Net Income (Loss) — — Net Change in Shareholder's Equity 4,000 100,000 100,000 Balance at June 30, 2024 4,000 $ 100,000 $ 100,000 See accompanying Notes to Unaudited Financial Statements which are an integral part of the financial statements. 2 Invesco Galaxy Ethereum ETF For the Period June 17, 2024 to June 30, 2024 (Unaudited) 2024 Cash flows from operating activities: Net Income (Loss) $ — Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Net cash provided by (used in) operating activities — Cash flows from financing activities: Proceeds from purchases of Shares 100,000 Net cash provided by (used in) financing activities 100,000 Net change in cash 100,000 Cash at beginning of period — Cash at end of period $ 100,000 Supplemental disclosure o

Management's Di scussion and Analysis of Financial Condition and Results of Operations

ITEM 2. Management's Di scussion and Analysis of Financial Condition and Results of Operations. This information should be read in conjunction with the financial statements and notes included in Part I, Item 1 of this Quarterly Report on Form 10-Q (the "Report"). This Report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties. The matters discussed throughout this Report that are not historical facts are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or the negative of these terms or other comparable terminology. All statements (other than statements of historical fact) included in this Report that address activities, events or developments that will or may occur in the future, including such matters as movements in the digital asset markets, operations of Invesco Galaxy Ethereum ETF (the "Trust"), plans and references by Invesco Capital Management LLC (the "Sponsor") to the Trust's future success and other similar matters, are forward-looking statements. These statements are only predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses the Sponsor has made based on its perception of historical trends, technology developments regarding the use of ether and other digital assets, including the systems used by the Sponsor and Coinbase Custody Trust Company, LLC, the Trust's Ethereum custodian (the "Ethereum Custodian") in their provision of services to the Trust, current conditions and expected future developments, as well as other factors appropriate in the circumstances. Whether or not actual results and developments

View Full Filing

View this 10-Q filing on SEC EDGAR