Invesco Galaxy Ethereum ETF
For the period ended Jun 30, 2026. Filed Aug 7, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 7, 2026
QETH$22.11-1.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001193125-26-209708
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001193125-26-338689
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 51 previous paragraphs and 59 current paragraphs.
30 unchanged; 13 reworded; 16 added; 6 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025
Current report
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025
Current report
FOR THE THREE MONTHS ENDED JUNE 30, 2026 COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2025
Current report
For the three months ended June 30, 2026, the Exchange market value of each Share decreased from $20.86 per Share to $15.70 per Share. The Share price low and high for the three months ended June 30, 2026 and related change from the Share price on March 31, 2026 was as follows: Shares traded at a low of $15.49 per Share (-25.74%) on June 25, 2026, and a high of $24.19 per Share (+15.96%) on April 17, 2026. The total return for the Trust on a market value basis was -24.74%.
Current report
Ether fell sharply during the second quarter of 2026 as digital asset markets remained under pressure from tighter financial conditions, weaker investor risk appetite, and ongoing geopolitical uncertainty. Similar to bitcoin, ether faced headwinds from a more hawkish U.S. interest rate backdrop and continued volatility across risk assets. Ether was also affected by softer activity across portions of the decentralized finance ecosystem as investors adopted a more cautious stance toward digital assets. While sentiment remained challenged, the quarter also saw progress toward a clearer U.S. regulatory framework for digital assets as the CLARITY Act advanced in Congress, a development viewed as constructive for the broader blockchain ecosystem. Despite incremental regulatory progress and continued innovation across the Ethereum network, these positive developments were insufficient to offset broader market weakness, resulting in negative performance during the period.
Current report
For the three months ended June 30, 2025, the Exchange market value of each Share increased from $18.24 per Share to $25.13 per Share. The Share price low and high for the three months ended June 30, 2025 and related change from the Share price on March 31, 2025 was as follows: Shares traded at a low of $14.60 per Share (-19.96%) on April 8, 2025, and a high of $28.07 per Share (+53.93%) on June 11, 2025. The total return for the Trust on a market value basis was +37.77%.
Current report
Ether 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 ether also continued to build, contributing to positive momentum throughout the quarter.
Current report
For the three months ended June 30, 2026, the NAV of each Share decreased from $20.86 per Share to $15.71 per Share. The falling price of ether during the three months ended June 30, 2026 contributed to an overall 24.66% decrease in the level of the Benchmark. The total return for the Trust on a NAV basis was -24.69%.
Current report
Net income (loss) for the three months ended June 30, 2026 was $(5.0) million, primarily resulting from net change in unrealized gain (loss) of $(5.0) million.
Current report
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.
Current report
FOR THE SIX MONTHS ENDED JUNE 30, 2026 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2025
Current report
Trust Share Price Performance
Current report
Ether generated negative performance during the first half of 2026 as broader weakness across digital asset markets outweighed several constructive developments for the Ethereum ecosystem. During the first quarter, ether came under pressure from broad deleveraging across crypto markets, exchange-traded product outflows, and macroeconomic uncertainty that reduced investor risk appetite. While market conditions remained challenging in the second quarter, the regulatory outlook for digital assets became more constructive as the CLARITY Act and other market structure initiatives advanced through the U.S. legislative process, signaling potential progress toward greater regulatory certainty for the industry. Ether also continued to benefit from strong network activity and its central role in decentralized applications, stablecoin infrastructure, and blockchain-based financial services. However, these supportive developments were insufficient to offset broader market weakness, resulting in negative year-to-date performance for the Trust.
Current report
Ether 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 ether exchange-traded products in the second quarter, helping ether regain its ground.
Current report
Trust Share Net Asset Performance
Current report
For the six months ended June 30, 2026, the NAV of each Share decreased from $29.61 per Share to $15.71 per Share. The falling price of ether during the six months ended June 30, 2026 contributed to an overall 46.89% decrease in the level of the Benchmark. The total return for the Trust on a NAV basis was -46.94%.
Removed paragraphs (6)
Previous report
NEITHER THE PAST PERFORMANCE OF THE TRUST NOR THE PRIOR BENCHMARK LEVELS AND CHANGES,
Previous report
POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE TRUST’S FUTURE PERFORMANCE.
Previous report
NEITHER THE PAST PERFORMANCE OF THE TRUST NOR THE PRIOR BENCHMARK LEVELS AND CHANGES,
Previous report
POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE TRUST’S FUTURE PERFORMANCE.
Previous report
Ether declined nearly 30% during the first quarter of 2026, resulting in negative performance for the Trust. January and early February’s sharp selloff gave way to a more macro‑driven consolidation in February and March, as geopolitical tensions, tariff uncertainty, and mixed U.S. economic data kept risk appetite subdued and digital assets trading in compressed ranges. Ether fell to lows near $1,800 before stabilizing in the $2,050–$2,200 range, with weakness persisting despite record‑high network usage. Performance was further weighed down by broader deleveraging across crypto markets, early‑February outflows from spot crypto exchange-traded products, and cautious investor positioning. While prices and flows showed signs of stabilization toward quarter‑end, unfavorable price movements earlier in the quarter remained the primary driver of performance for the quarter.
Previous report
Ether 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 ether because it was the digital asset that was exploited. This took a major toll on investor confidence in ether, 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.
Reworded paragraphs (13)
Previous wording
The Invesco Galaxy Ethereum ETF (the “Trust”) is a Delaware statutory trust that was formed on September 27, 2023. The Trust continuously issues common shares representing fractional undivided beneficial interest in and ownership of the Trust (“Shares”). The Trust operates pursuant to its Second Amended and Restated Declaration of Trust and Trust Agreement, dated as of June 21, 2024 (the “Trust Agreement”). The Shares began trading on the Cboe BZX Exchange, Inc. (the “Exchange”) under the ticker symbol “QETH” on July 23, 2024. The Trust offers Shares only to certain eligible financial institutions (“Authorized Participants”) in one or more blocks of 5,000 Shares (“Creation Baskets”) based on the quantity of ether attributable to each Share of the Trust.
Current wording
Invesco Galaxy Ethereum ETF (the “Trust”) is a Delaware statutory trust that was formed on September 27, 2023. The Trust continuously issues common shares representing fractional undivided beneficial interest in and ownership of the Trust (“Shares”). The Trust operates pursuant to its Second Amended and Restated Declaration of Trust and Trust Agreement, dated as of June 21, 2024 (the “Trust Agreement”). The Shares began trading on the Cboe BZX Exchange, Inc. (the “Exchange”) under the ticker symbol “QETH” on July 23, 2024. The Trust offers Shares only to certain eligible financial institutions (“Authorized Participants”) in one or more blocks of 5,000 Shares (“Creation Baskets”) based on the quantity of ether attributable to each Share of the Trust.
Previous wording
The following discussion and analysis was prepared to supplement information contained in the accompanying financial statements and is intended to explain certain items regarding the Trust's financial condition as of March 31, 2026, and its results of operations for the three months ended March 31, 2026 and 2025. It should be read in conjunction with the unaudited financial statements and related notes thereto contained in this Report.
Current wording
The following discussion and analysis was prepared to supplement information contained in the accompanying financial statements and is intended to explain certain items regarding the Trust’s financial condition as of June 30, 2026, and its results of operations for the three and six months ended June 30, 2026 and 2025. It should be read in conjunction with the unaudited financial statements and related notes thereto contained in this Report.
Previous wording
The investment objective of the Trust is for the Shares to reflect the performance of the spot price of ether as measured using the Lukka Prime Ethereum Reference Rate (the “Benchmark”) less the Trust’s expenses and other liabilities. The Shares are intended to provide institutional and retail investors with a simple, cost-effective means of gaining investment benefits similar to those of holding ether.
Current wording
The investment objective of the Trust is for the Shares to reflect the performance of the spot price of ether as measured using the Lukka Prime Ethereum Reference Rate (the “Benchmark”) less the Trust’s expenses and other liabilities.
Previous wording
In seeking to achieve its investment objective, the Trust will hold ether. The Trust will value its Shares each Business Day as of 4:00 p.m. ET. The Trust applies FASB ASC Topic 820, Fair Value Measurement, in the valuation of ether held by the Trust and for financial statement purposes. The value of ether held by the Trust is determined based on the FMV price for ether, reflecting the execution price of ether on its principal market as determined each day by the Benchmark Provider. The FMV price for ether reflects the price that would be received for ether in a current sale, which assumes an orderly transaction between market participants on the measurement date of ether on its “principal market,” generally, the most advantageous market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. The Trust determines its principal market (or in the absence of a principal market the most advantageous market) on a periodic basis to determine which market is its principal market for the purpose of calculating fair value for the creation of quarterly and annual financial statements. Issuer-specific events, market trends, bid/asked quotes of brokers and information providers and other data may be reviewed in the course of making a good faith determination of a security’s fair value. The Benchmark is designed to provide an estimated fair market value price for ether, based on the execution price of ether on its principal market. In this regard, the Benchmark Provider seeks to identify a “principal market” for ether each day by evaluating eligible ether trading platforms across a variety of different criteria, including the trading platforms’ oversight and governance frameworks, microstructure efficiency, trading volume, data transparency and data integrity.
Current wording
In seeking to achieve its investment objective, the Trust holds ether. The Trust will value its Shares each Business Day as of 4:00 p.m. ET. The Trust applies FASB ASC Topic 820, Fair Value Measurement, in the valuation of ether held by the Trust and for financial statement purposes. The value of ether held by the Trust is determined based on the FMV price for ether, reflecting the execution price of ether on its principal market as determined each day by the Benchmark Provider. The FMV price for ether reflects the price that would be received for ether in a current sale, which assumes an orderly transaction between market participants on the measurement date of ether on its “principal market,” generally, the most advantageous market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. The Trust determines its principal market (or in the absence of a principal market the most advantageous market) on a periodic basis to determine which market is its principal market for the purpose of calculating fair value for the creation of quarterly and annual financial statements. Issuer-specific events, market trends, bid/asked quotes of brokers and information providers and other data may be reviewed in the course of making a good faith determination of an investment’s fair value. The Benchmark is designed to provide an estimated fair market value price for ether, based on the execution price of ether on its principal market. In this regard, the Benchmark Provider seeks to identify a “principal market” for ether each day by evaluating eligible ether trading platforms across a variety of different criteria, including the trading platforms’ oversight and governance frameworks, microstructure efficiency, trading volume, data transparency and data integrity.
Previous wording
Net cash flow provided by (used in) operating activities was $(0.5) million and $(1.6) million for the three months ended March 31, 2026 and 2025, respectively. During the three months ended March 31, 2026, $9.8 million was paid to purchase ether and $9.3 million was received from sales of ether for redemptions. During the three months ended March 31, 2025, $3.1 million was paid to purchase ether and $1.5 million was received from sales of ether for redemptions.
Current wording
Net cash flow provided by (used in) operating activities was $(2.2) million and $(5.0) million for the six months ended June 30, 2026 and 2025, respectively. During the six months ended June 30, 2026, $11.5 million was paid to purchase ether and $9.3 million was received from sales of ether for redemptions. 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.
Previous wording
The Trust’s net cash flow provided by (used in) financing activities was $0.5 million and $1.6 million during the three months ended March 31, 2026 and 2025, respectively. This included $9.8 million and $3.1 million from Shares purchased by Authorized Participants and $9.3 million and $1.5 million from Shares redeemed by Authorized Participants during the three months ended March 31, 2026 and 2025, respectively.
Current wording
The Trust’s net cash flow provided by (used in) financing activities was $2.2 million and $5.0 million during the six months ended June 30, 2026 and 2025, respectively. This included $11.5 million and $6.4 million from Shares purchased by Authorized Participants and $9.3 million and $1.5 million from Shares redeemed by Authorized Participants during the six months ended June 30, 2026 and 2025, respectively.
Previous wording
For the three months ended March 31, 2026, the NAV of each Share decreased from $29.61 per Share to $20.86 per Share. The rising price of ether during the three months ended March 31, 2026 contributed to an overall 29.50% decrease in the level of the Benchmark. The total return for the Trust on a NAV basis was -29.55%.
Current wording
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%.
Previous wording
For the three months ended March 31, 2026, the Exchange market value of each Share decreased from $29.59 per Share to $20.86 per Share. The Share price low and high for the three months ended March 31, 2026 and related change from the Share price on June 30, 2025 was as follows: Shares traded at a low of $18.51 per Share (-37.45%) on February 24, 2026, and a high of $33.73 per Share (+13.99%) on January 14, 2026. The total return for the Trust on a market value basis was -29.50%.
Current wording
For the six months ended June 30, 2026, the Exchange market value of each Share decreased from $29.59 per Share to $15.70 per Share. The Share price low and high for the six months ended June 30, 2026 and related change from the Share price on December 31, 2025 was as follows: Shares traded at a low of $15.49 per Share (-47.65%) on June 25, 2026, and a high of $33.73 per Share (+13.99%) on January 14, 2026. The total return for the Trust on a market value basis was -46.94%.
Previous wording
For the three months ended March 31, 2025, the Exchange market value of each Share decreased from $33.39 per Share to $18.24 per Share. The Share price low and high for the three months ended March 31, 2025 and related change from the Share price on December 31, 2024 was as follows: Shares traded at a low of $18.24 per Share (-45.37%) on March 31, 2025, and a high of $36.82 per Share (+10.27%) on January 6, 2025. The total return for the Trust on a market value basis was -45.37%.
Current wording
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%.
Previous wording
Net income (loss) for the three months ended March 31, 2026 was $(7.5) million, primarily resulting from net realized gain (loss) of $(3.6) million and net change in unrealized gain (loss) of $(3.9) million.
Current wording
Net income (loss) for the six months ended June 30, 2026 was $(12.5) million, primarily resulting from net realized gain (loss) of $(3.6) million and net change in unrealized gain (loss) of $(8.8) million.
Previous wording
For the three months ended March 31, 2025, the NAV of each Share decreased from $33.37 per Share to $18.24 per Share. The falling price of ether during the three months ended March 31, 2025 contributed to an overall 45.30% decrease in the level of the Benchmark. The total return for the Trust on a NAV basis was -45.34%.
Current wording
For the six months ended June 30, 2025, the NAV of each Share decreased from $33.37 per Share to $25.10 per Share. The falling price of ether during the six months ended June 30, 2025 contributed to an overall 24.67% decrease in the level of the Benchmark. The total return for the Trust on a NAV basis was -24.78%.
Previous wording
Net income (loss) for the three months ended March 31, 2025 was $(11.4) million, primarily resulting from net realized gain(loss) of $(0.9) million and net change in unrealized gain (loss) of $(10.6) million.
Current wording
Net income (loss) for the six months ended June 30, 2025 was $(5.9) million, primarily resulting from net realized gain (loss) of $(0.9) million and net change in unrealized gain (loss) of $(5.0) million.
Previous wording
The preparation of financial statements in conformity with U.S. GAAP requires the Sponsor's management to make estimates and assumptions that affect the reported amounts of the assets and liabilities and disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period covered by this report. A description of the valuation of ether, a critical accounting policy that the Trust believes is important to understanding its results of operations and financial position, is provided in the section entitled “Valuation of Ether,” above. In addition, please refer to Note 2 to the financial statements of the Trust for further discussion of the Trust’s accounting policies and Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates on Form 10-K for the year ended December 31, 2025, as filed with the SEC on March 2, 2026.
Current wording
The preparation of financial statements in conformity with U.S. GAAP requires the Sponsor to make estimates and assumptions that affect the reported amounts of the assets and liabilities and disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period covered by this report. A description of the valuation of ether, a critical accounting policy that the Trust believes is important to understanding its results of operations and financial position, is provided in the section entitled “Valuation of Ether,” above. In addition, please refer to Note 2 to the financial statements of the Trust for further discussion of the Trust’s accounting policies and Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates on Form 10-K for the year ended December 31, 2025, as filed with the SEC on March 2, 2026.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025
Previous report — wording carried elsewhere
FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025