Invesco Galaxy Ethereum ETF

Current report

Operating Activities

Current report

Net cash flow provided by (used in) operating activities was $(5.0) million and $0.0 million for the six months ended June 30, 2025 and 2024, respectively. During the six months ended June 30, 2025, $6.4 million was paid to purchase ether and $1.5 million was received from sales of ether for redemptions.

Current report

Financing Activities

Current report

The Trust’s net cash flow provided by (used in) financing activities was $5.0 million and $0.1 million during the six months ended June 30, 2025 and 2024, respectively. This included $6.4 million and $0.1 million from Shares purchased by Authorized Participants and $1.5 million and $0.0 million from Shares redeemed by Authorized Participants during the six months ended June 30, 2025 and 2024, respectively.

Current report

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

Current report

Ethereum (ETH) posted a strong recovery in the second quarter of 2025, climbing over 35% and delivering meaningful gains for the Trust. The rebound followed a challenging first quarter and was largely driven by improving investor sentiment after President Trump delayed the implementation of his “Liberation Day” tariffs by 90 days, easing macroeconomic pressures. A surge in stablecoin issuance and the expansion of real-world asset tokenization also helped boost demand across the Ethereum ecosystem. Staking activity reached all-time highs, introducing deflationary dynamics that supported price momentum and underscored long-term conviction among holders. Confidence was further reinforced by progress on the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), signaling a more constructive regulatory environment. Meanwhile, the Pectra upgrade, with enhancements to security, user experience, and scalability, marked Ethereum’s most significant enhancement since its transition to Proof-of-Stake and was well received by the market. Institutional interest in Ethereum also continued to build, contributing to positive momentum throughout the quarter.

Current report

Ethereum (ETH) experienced a volatile first half of 2025, with sharp losses in the first quarter followed by a strong rebound in the second quarter. Ether declined by over 45% in the first quarter, driven by deteriorating macroeconomic conditions, a broad selloff in risky assets, and the ByBit hack in late February, which severely dented investor confidence in the Ethereum network. Despite these headwinds, the second quarter saw a meaningful recovery, with ether rising more than 35% as broad market risk sentiment improved. The delay of President Trump’s “Liberation Day” tariffs helped ease market pressures, while a surge in stablecoin issuance, real-world asset tokenization, and record high staking activity supported renewed demand. Regulatory developments also played a key role, with continued momentum from the President’s “Strengthening American Leadership in Digital Financial Technology” executive order and progress on the GENIUS Act reinforcing optimism. The Pectra upgrade, Ethereum’s most notable improvement since its transition to Proof-of-Stake, further boosted confidence with enhancements to security, user experience, and scalability. Lastly, institutional participation continued to grow as illustrated by renewed inflows into U.S. spot Ethereum exchange-traded products in the second quarter, helping ether regain its ground.

Current report

On June 17, 2024, the Trust was seeded with $100,000 through the sale of 4,000 Shares (“Initial Seed Shares”) at a per-Share price of $25.00 by the Trust to Invesco Ltd. Through June 30, 2024, the Trust had no operations other than those related to its organization and registration and the sale of the Initial Seed Shares.

Previous report

Ethereum (ETH) fell sharply in the first quarter of 2025, down over 50% and leading to significant losses for the Trust. While prices initially continued their year-end 2024 rally driven by the excitement from President Trump’s election, mounting economic concerns took the center stage for the rest of the quarter. The nosedive in U.S. financial markets eroded investor risk appetite which triggered a flight to safe havens and outflows from U.S. crypto ETPs. Another major headwind was the ByBit hack in late February, which dealt a heavy blow to ETH because it was the digital asset that was exploited. This took a major toll on investor confidence in ETH, and prevented it from regaining ground amid the broader market downturn. Despite the negative price action, regulatory progress for digital assets continued to provide optimism for the broader asset class. Most notably, President Trump signed the “Strengthening American Leadership in Digital Financial Technology” executive order, which ordered the establishment of a strategic bitcoin reserve and digital assets stockpile, SAB 121 was repealed, and crypto-friendly policymakers were either nominated or appointed to the SEC and Commodity Futures Trading Commission, the two primary U.S. regulators for the crypto space.

Current report — wording carried from elsewhere

NEITHER THE PAST PERFORMANCE OF THE TRUST NOR THE PRIOR BENCHMARK LEVELS AND CHANGES,

Current report — wording carried from elsewhere

POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE TRUST’S FUTURE PERFORMANCE.

Current report — wording carried from elsewhere

For the six months ended June 30, 2025, the Exchange market value of each Share decreased from $33.39 per Share to $25.13 per Share. The Share price low and high for the six months ended June 30, 2025 and related change from the Share price on December 31, 2024 was as follows: Shares traded at a low of $14.60 per Share (-56.28%) on April 8, 2025, and a high of $36.82 per Share (+10.29%) on January 6, 2025. The total return for the Trust on a market value basis was -24.74%.

Current report — wording carried from elsewhere

For the three months ended June 30, 2025, the NAV of each Share increased from $18.24 per Share to $25.10 per Share. The rising price of ether during the three months ended June 30, 2025 contributed to an overall 37.70% increase in the level of the Benchmark. The total return for the Trust on a NAV basis was +37.61%.

Current report — wording carried from elsewhere

Net income (loss) for the three months ended June 30, 2025 was $5.5 million, primarily resulting from net change in unrealized gain (loss) of $5.6 million.

Previous report — wording carried elsewhere

Prime Reference Rate (USD)”). There can be no assurances that the price of the Shares or the Trust’s NAV will exceed the Benchmark levels.

Previous report — wording carried elsewhere

FOR THE THREE MONTHS ENDED MARCH 31, 2025