Invesco Galaxy Bitcoin ETF

What they do

The Trust holds bitcoin, with Coinbase Custody Trust Company as custodian, and passively manages its portfolio without active trading or hedging. It issues and redeems shares only through Authorized Participants in Creation Baskets of 5,000 shares. The Trust's NAV is calculated daily using the Lukka Prime Bitcoin Reference Rate as the benchmark.

Revenue drivers

• Sponsor Fee — The Trust earns a unified fee of 0.25% per annum on total net assets, accrued daily and paid monthly in U.S. dollars. The fee was waived on the first $5 billion of assets for the first six months, but the waiver expired on July 11, 2024.
• Bitcoin holdings — The Trust's only asset is bitcoin, and its performance is tied to the spot price of bitcoin. The Trust does not generate revenue from operations; income or loss is driven by changes in bitcoin's fair value.
• Creation and redemption activity — Shares are created and redeemed only in Creation Baskets, which affects the amount of bitcoin held and thus the size of the Sponsor Fee base. Redemption activity during Q2 2026 reduced shares outstanding, as shown in the 10-Q.

Recent performance

For the year ended December 31, 2025, the Trust reported a net loss of $72.3 million, compared to net income of $406.1 million in 2024. Operating cash flow was $111.1 million in 2025 versus negative $321.5 million in 2024. As of June 30, 2026, total assets were $315.9 million, with shareholder equity of $315.8 million and no cash. The Trust had no revenue in all reported periods, as it is not an operating business. In Q2 2026, the Trust redeemed 1,510,000 shares at an average price of $63.90 per share.

Strategy

The Trust is passively managed and does not actively trade or hedge bitcoin. Its stated strategy is to hold bitcoin and reflect the performance of the spot price, less expenses. The Sponsor does not sell bitcoin at high prices or buy at low prices. The Trust's only ordinary recurring expense is the Sponsor Fee, which is used to cover operating costs.

Risks

• Market and volatility risk — Bitcoin has historically been highly volatile and could decline rapidly, including to zero, which would make the Shares substantially worthless.
• Adoption risk — The Bitcoin network is new and rapidly changing; if its development or acceptance slows or reverses, the price of bitcoin could be adversely affected.
• Regulatory risk — Regulatory changes or actions could make it difficult or illegal to acquire, hold, sell, or use bitcoin, potentially impacting the price of bitcoin and the Trust.
• Cybersecurity risk — Flaws in bitcoin's source code or exploitation of them could lead to theft of bitcoin or loss of functionality, affecting the Trust's holdings.

Outlook

Management does not provide forward-looking statements about bitcoin price or fund flows. The Sponsor is not aware of any known trends or uncertainties that would materially change the Trust's liquidity and capital resources. The Trust will continue to accrue and pay the Sponsor Fee at 0.25% per annum, and may sell bitcoin to cover expenses. No material changes to risk factors were identified in the latest 10-Q.