Invesco Galaxy Bitcoin ETF, a Delaware statutory trust, reported significant financial performance for the year ending December 31, 2024, with net income of $406.1 million. This figure was primarily driven by a net change in unrealized gains of $346.6 million and net realized gains of $60.3 million. The Trust's total assets surged to approximately $727.8 million, a substantial increase from $100,000 at the end of 2023, reflecting the growing interest in bitcoin as an investment vehicle. The net asset value (NAV) per share rose from $46.29 to $93.28, while the market value per share increased from $46.30 to $93.22 during the same period.
The Trust commenced trading on the Cboe BZX Exchange on January 11, 2024, and has since seen a notable increase in its share count, from 4,000 shares at the end of 2023 to 7.8 million shares by December 31, 2024. This growth was facilitated by the issuance of new shares and the redemption of existing ones, with the Trust's total return on a market value basis reaching 101.34%. The increase in share value was attributed to a rally in bitcoin prices, which rose by 103% during the reporting period, driven by factors such as the launch of spot bitcoin exchange-traded products (ETPs) and favorable macroeconomic conditions.
Strategically, the Trust has maintained a passive management approach, holding bitcoin directly without engaging in active trading or hedging strategies. The bitcoin is custodied by Coinbase Custody Trust Company, ensuring secure storage. The Trust's operational framework includes a unified fee structure of 0.25% per annum, which was waived for the first $5 billion in assets for the initial six months post-launch. However, this waiver expired on July 11, 2024, and the Trust is now responsible for covering its operational expenses through the sale of bitcoin.
The filing also highlighted the Trust's exposure to various risks, including market volatility, regulatory changes, and cybersecurity threats. The Trust's performance is closely tied to the price of bitcoin, which can fluctuate significantly due to market conditions and investor sentiment. The management has implemented risk management processes to mitigate these risks, although they acknowledge that no system can guarantee complete protection against losses.
Looking ahead, the Trust aims to continue reflecting the performance of bitcoin's spot price while navigating the evolving regulatory landscape and market dynamics. The management remains optimistic about the potential for growth in the digital asset space, particularly as institutional adoption increases and regulatory clarity improves.
About Invesco Galaxy Bitcoin ETF
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