Invesco Galaxy Ethereum ETF

What they do

The Trust continuously issues common shares representing fractional undivided beneficial interests in its ether holdings. It is managed by Invesco Capital Management LLC as Sponsor, with CSC Delaware Trust Company as Delaware trustee. Coinbase Custody Trust Company holds all of the Trust's ether in cold storage in the Prime Custody Vault. Shares are created and redeemed only in 5,000-share Creation Baskets with Authorized Participants.

Revenue drivers

• Ether price exposure — The Trust's NAV and share value move directly with the spot price of ether as measured by the Lukka Prime Ethereum Reference Rate; the Trust has no other business lines.
• Sponsor Fee (0.25% per annum) — The Trust's only ordinary recurring expense is a unified 0.25% annual Sponsor Fee accrued daily on total net assets and paid monthly in arrears; this fee is the Sponsor's compensation, and the Sponsor pays ordinary Trust expenses out of it.
• Creation and redemption activity — Authorized Participants create and redeem 5,000-share baskets in kind, which changes shares outstanding and the Trust's ether holdings; the Trust reported no Creation Basket redemptions during the three months ended June 30, 2026.

Recent performance

The Trust reported 2025 annual net income of negative $1.8 million and operating cash flow of negative $4.1 million. As of June 30, 2026, total assets were $15.6 million, total liabilities were $3,378, and shareholder equity was $15.6 million. Cash and equivalents were $0.00 at June 30, 2026, consistent with the Trust holding ether rather than cash. The Trust reported no redemptions of Creation Baskets from Authorized Participants for each month in the quarter ended June 30, 2026.

Strategy

The Trust is passively managed; the Sponsor does not actively trade ether, does not time purchases or sales, and does not use hedging techniques. It seeks to reflect the spot price of ether as measured by the Lukka Prime Ethereum Reference Rate, less expenses and liabilities. The Trust values shares each business day at 4:00 p.m. ET using fair value determined by Lukka Inc. as Benchmark Provider, applying FASB ASC Topic 820. Shares are offered only to Authorized Participants in 5,000-share Creation Baskets. The Sponsor states it is not aware of known trends, demands, commitments, events or uncertainties reasonably likely to result in material changes to the Trust's liquidity and capital resources needs.

Risks

• Ether price volatility — Ether has historically exhibited high price volatility, and the Trust's value could decline rapidly, including to zero, if ether prices fall.
• Adoption risk — The further development and acceptance of the Ethereum network is uncertain, and slowing or reversing adoption could adversely affect the price of ether and the Shares.
• Regulatory risk — Regulatory changes could restrict the use of ether, the Ethereum network, or trading venues, or make it difficult or illegal to acquire, hold, sell or use ether in one or more countries.
• Cybersecurity and code risk — Flaws in ether's source code have previously been discovered, including ones resulting in theft of users' ether, and future exploits could harm the Trust's holdings.

Outlook

The Trust does not provide earnings guidance; it is a passive commodity-holding vehicle whose results depend on the spot price of ether and the 0.25% Sponsor Fee. Management states it is not aware of known trends, demands, commitments, events or uncertainties reasonably likely to result in material changes to the Trust's liquidity and capital resources needs. The Trust's most recent quarterly report noted no material changes from the risk factors previously disclosed in the 2025 Form 10-K.