Invesco Galaxy Ethereum ETF
For the period ended Sep 30, 2026. Filed Nov 6, 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.
Sep 30, 2026 · Filed Nov 6, 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 2026-06-30; filed 2026-08-07.
0001193125-26-338689
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0001193125-26-450281
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 59 previous paragraphs and 59 current paragraphs.
35 unchanged; 13 reworded; 11 added; 11 removed; 0 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 (11)
Current report
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025
Current report
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025
Current report
For the three months ended September 30, 2026, the Exchange market value of each Share increased from $15.70 per Share to $26.53 per Share. The Share price low and high for the three months ended September 30, 2026 and related change from the Share price on June 30, 2026 was as follows: Shares traded at a low of $16.08 per Share (+2.42%) on July 1, 2026, and a high of $27.47 per Share (+74.97%) on September 21, 2026. The total return for the Trust on a market value basis was +68.98%.
Current report
Ether rebounded sharply during the third quarter of 2026, gaining about 70%, outperforming bitcoin and ending a three-quarter losing streak. The recovery was concentrated in August after the US Treasury announced plans to increase buybacks of longer-dated debt, easing pressure on long-term yields and supporting risk appetite. US spot ether exchange-traded product (“ETPs”) attracted approximately $3.1 billion in net inflows during the quarter following two quarters of outflows, with the impact magnified by ether’s smaller market capitalization relative to bitcoin. Corporate treasury buying and record staking participation provided additional support, while continued growth in stablecoins, decentralized finance, and tokenized financial assets reinforced Ethereum’s role as a leading settlement network. The third quarter exploit of Coinkite’s Coldcard hardware wallets also highlighted the appeal of regulated ETP access, institutional-grade custody controls, and insurance arrangements. Although the CLARITY Act failed to advance in the Senate, the regulatory backdrop remained constructive as the SEC introduced Regulation Crypto Assets, a tailored offering regime intended to provide clearer pathways for certain crypto-asset issuances and capital formation in the US and a temporary Innovation Exemption that created a conditional pathway for limited on-chain trading of tokenized U.S.-listed stocks. These steps, together with continued growth in tokenized financial assets, reinforced confidence in the broader digital asset ecosystem and helped ether largely offset losses from earlier in the year.
Current report
For the three months ended September 30, 2025, the Exchange market value of each Share increased from $25.13 per Share to $41.48 per Share. The Share price low and high for the three months ended September 30, 2025 and related change from the Share price on June 30, 2025 was as follows: Shares traded at a low of $23.98 per Share (-4.58%) on July 1, 2025, and a high of $48.23 per Share (+91.92%) on August 22, 2025. The total return for the Trust on a market value basis was +65.06%.
Current report
Ethereum was a standout in the third quarter of 2025, rallying by over 65%, far outpacing bitcoin’s 7% gain. Crypto broadly benefited from supportive regulatory developments, particularly the passage of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which solidified the regulation of stablecoins and put Ethereum at the forefront given it is the leading platform for stablecoins. Corporate launches of new layer-1 networks, President Trump's executive order permitting retirement accounts to hold digital assets, and a more positive macroeconomic backdrop leading into the September Federal Reserve (Fed) rate cut also provided optimism for digital assets. US ETP inflows also continued to pick up.
Current report
Net income (loss) for the three months ended September 30, 2026 was $10.3 million, primarily resulting from net change in unrealized gain (loss) of $10.3 million.
Current report
Net income (loss) for the three months ended September 30, 2025 was $14.1 million, primarily resulting from net realized gain (loss) of $0.4 million and net change in unrealized gain (loss) of $13.7 million.
Current report
Ether remained lower year to date through the third quarter of 2026 because the third-quarter rally did not fully reverse the steep losses recorded during the first half. Earlier weakness reflected tighter financial conditions, geopolitical uncertainty, reduced risk appetite, and two consecutive quarters of outflows from US spot ether ETPs. The picture improved materially in the third quarter as easing pressure on long-term yields and a return of ETP demand helped restore investor confidence. At the same time, expanding institutional ownership, deeper staking participation, and continued adoption of Ethereum-based stablecoins and tokenized assets strengthened the network’s longer-term investment case. The SEC’s proposed Regulation Crypto Assets and the Innovation Exemption added to the more constructive backdrop, although Regulation Crypto Assets remained a proposal rather than a finalized rule.
Current report
Ethereum posted positive results of over 25% in the first three quarters of 2025. While it experienced sharp losses in the first quarter of 2025 of over 45% due to deteriorating macroeconomics and a broad selloff in digital assets, as well as the ByBit hack feeding negative sentiment on crypto, prices rebounded strongly in the second and third quarters. Growing institutional demand and ETP inflows amid improving risk appetite and the resumption of Fed easing drove positive momentum. The Pectra upgrade in the second quarter of 2025 also significantly improved investor confidence in the Ethereum network. Lastly, the US regulatory environment was a tailwind, particularly in July when the GENIUS Act was adopted, establishing a federal regulatory regime for stablecoins and Ethereum is the leading blockchain platform for stablecoins.
Current report
Net income (loss) for the nine months ended September 30, 2025 was $8.2 million, primarily resulting from net realized gain (loss) of $(0.4) million and net change in unrealized gain (loss) of $8.7 million.
Removed paragraphs (11)
Previous report
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025
Previous report
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025
Previous 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%.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
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 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.
Previous report
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.
Reworded paragraphs (13)
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 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.
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 September 30, 2026, and its results of operations for the three and nine months ended September 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
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.
Current wording
In seeking to achieve its investment objective, the Trust holds ether. The Trust values 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
As of the date of this Report, each of ABN AMRO Clearing Chicago LLC, BNY Mellon Capital Markets, LLC, Citadel Securities LLC, Goldman Sachs & Co., Jane Street Capital LLC, Jefferies LLC, JP Morgan Securities Inc., Macquarie Capital (USA) Inc. and Virtu Americas LLC has executed a Participant Agreement and are the only Authorized Participants.
Current wording
As of the date of this Report, each of ABN AMRO Clearing USA LLC, BNY Mellon Capital Markets, LLC, Citadel Securities LLC, Goldman Sachs & Co., Jane Street Capital LLC, Jefferies LLC, JP Morgan Securities Inc., Macquarie Capital (USA) Inc. and Virtu Americas LLC has executed a Participant Agreement and are the only Authorized Participants.
Previous 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.
Current wording
Net cash flow provided by (used in) operating activities was $(2.2) million and $(7.2) million for the nine months ended September 30, 2026 and 2025, respectively. During the nine months ended September 30, 2026, $16.9 million was paid to purchase ether and $14.7 million was received from sales of ether for redemptions. During the nine months ended September 30, 2025, $33.4 million was paid to purchase ether and $26.2 million was received from sales of ether for redemptions.
Previous 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.
Current wording
The Trust’s net cash flow provided by (used in) financing activities was $2.2 million and $7.2 million during the nine months ended September 30, 2026 and 2025, respectively. This included $16.9 million and $33.4 million from Shares purchased by Authorized Participants and $14.7 million and $26.2 million from Shares redeemed by Authorized Participants during the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
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 wording
For the three months ended September 30, 2026, the NAV of each Share increased from $15.71 per Share to $26.54 per Share. The rising price of ether during the three months ended September 30, 2026 contributed to an overall 69.07% increase in the level of the Benchmark. The total return for the Trust on a NAV basis was +68.94%.
Previous 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%.
Current wording
For the three months ended September 30, 2025, the NAV of each Share increased from $25.10 per Share to $41.49 per Share. The rising price of ether during the three months ended September 30, 2025 contributed to an overall 65.39% increase in the level of the Benchmark. The total return for the Trust on a NAV basis was +65.30%.
Previous wording
FOR THE SIX MONTHS ENDED JUNE 30, 2026 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2025
Current wording
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2026 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER 30, 2025
Previous 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%.
Current wording
For the nine months ended September 30, 2026, the Exchange market value of each Share decreased from $29.59 per Share to $26.53 per Share. The Share price low and high for the nine months ended September 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 -10.34%.
Previous wording
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 wording
For the nine months ended September 30, 2025, the Exchange market value of each Share increased from $33.39 per Share to $41.48 per Share. The Share price low and high for the nine months ended September 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 (-56.27%) on April 8, 2025, and a high of $48.23 per Share (+44.44%) on August 22, 2025. The total return for the Trust on a market value basis was +24.23%.
Previous wording
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%.
Current wording
For the nine months ended September 30, 2026, the NAV of each Share decreased from $29.61 per Share to $26.54 per Share. The falling price of ether during the nine months ended September 30, 2026 contributed to an overall 10.20% decrease in the level of the Benchmark. The total return for the Trust on a NAV basis was -10.37%.
Previous 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.
Current wording
Net income (loss) for the nine months ended September 30, 2026 was $(2.2) million, primarily resulting from net realized gain (loss) of $(3.6) million and net change in unrealized gain (loss) of $1.4 million.
Previous 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%.
Current wording
For the nine months ended September 30, 2025, the NAV of each Share increased from $33.37 per Share to $41.49 per Share. The rising price of ether during the nine months ended September 30, 2025 contributed to an overall 24.58% increase in the level of the Benchmark. The total return for the Trust on a NAV basis was +24.33%.