Crypto firm Galaxy Digital joins forces with US-based Invesco Ltd., a global asset management firm with experience of managing $1.5 trillion in assets of its global clients, to develop a comprehensive suite of U.S.-listed, physically backed, digital asset ETFs.
Through this partnership, the companies aim to offer investors an unprecedented combination of solutions and information that give structure to the complex and fast-moving digital assets ecosystem.
“Invesco has a long history of using ETFs to democratize investor access to disruptive, innovative asset classes. Now, through our partnership with market leader Galaxy Digital, we are able to incorporate their expertise of blockchain technology, digital assets and cryptocurrency into our product capabilities,” said John Hoffman, Head of Americas, ETFs & Indexed Strategies at Invesco. “This combination of complementary strengths will help clients safely and prudently navigate this exciting new asset class to help meet their desired investment outcomes.”
“Galaxy Digital is laser-focused on helping investors safely and efficiently access this burgeoning asset class,” added Steve Kurz, Head of Asset Management at Galaxy Digital. “Our partnership with Invesco, a longstanding ETF innovator, will bring the same thoughtful approach to educating investors about digital assets as Invesco has brought to the ETF industry itself.”
Digital Asset ETF Adoption Gaining Traction
Digital Asset ETFs offers users a simple, efficient and affordable way to directly invest in the new asset class. This is regulated as well as investors gain access to crypto investment without the associated risk of self-custody within a digital wallet.
Last year, JPMorgan’s Global Markets Strategy team released a report covering Bitcoin which found that institutional investors are moving from Gold ETFs to Bitcoin. The report found that bitcoin demand is driven not only by younger retail investors but also by institutional investors, such as family offices and asset managers.
The findings now seems to be absolutely verifiable as we see many big organization investing in Bitcoin and other cryptocurrencies. This list is led by MicroStrategy which now owns a massive 108,992 Bitcoins. Other prominent companies having Bitcoin investments as treasury reserve strategy include Elon Musk’s Tesla, payment giant Visa, and financial media company Benzinga.
The growing interest of big organizations in Bitcoin and other digital assets boosted the confidence of retail investors. This was further improved with evolving regulatory approaches by governments. Finally, El Salvador Bitcoin adoption as a legal tender has even forced the strongest critics of crypto to rethink and even change their perception.
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In the last three years, Invesco ETFs & Indexed Strategies has more than doubled its total assets under management to $471 billion globally by both launching new ETFs and elevating existing products that help solve specific client needs.
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Galaxy Digital has $2.1 billion in AUM. Its asset management business is rapidly expanding its capabilities to provide institutional-grade exposure to every investable corner of the crypto and blockchain ecosystems. As a first mover and leader in digital asset and blockchain funds, the asset management team combines extensive experience at both top-tier financial institutions and within the digital asset sector, working closely with bank platforms, institutional investors, and asset managers across distribution, client service, operations, and portfolio management.