Invesco Galaxy Ethereum ETF Reports $11.4 Million Net Loss Amid Ether Price Decline

Invesco Galaxy Ethereum ETF reported a net loss of $11.4 million for the three months ending March 31, 2025, primarily driven by significant declines in the value of ether, which fell over 50% during the quarter. The Trust's total income was recorded at $0, while expenses amounted to $12,423, leading to a net investment loss of $(12,423). The net realized loss from investments in ether sold to pay the sponsor fee and for redemptions totaled $(856,905), with an additional unrealized loss of $(10,565,458) from ether holdings. As a result, the net asset value (NAV) per share decreased from $33.28 at the beginning of the period to $18.24 by March 31, 2025.

Compared to the previous fiscal period, the Trust experienced a significant decline in both market value and NAV. The market value per share dropped from $33.39 to $18.24, reflecting a total return of -45.37% for the quarter. The NAV per share also decreased by 45.30%, indicating a substantial impact from the downturn in ether prices. The Trust's total assets decreased from approximately $23.6 million at the end of 2024 to about $13.7 million by the end of the first quarter of 2025.

Operationally, the Trust saw an increase in shares outstanding, rising from 708,000 shares at the end of 2024 to 753,000 shares by March 31, 2025. This increase was attributed to the purchase of 115,000 shares, offset by the redemption of 70,000 shares. The Trust's strategy remains focused on reflecting the performance of ether's spot price, and it continues to engage with authorized participants for share transactions. The Trust's investment objective is to provide a cost-effective means for investors to gain exposure to ether.

The filing also highlighted the Trust's ongoing challenges, including the impact of market conditions and investor sentiment on ether prices. The sharp decline in the value of ether was exacerbated by broader economic concerns and specific incidents, such as the ByBit hack, which negatively affected investor confidence. Despite these challenges, the Trust noted that regulatory progress in the digital asset space could provide a more favorable environment moving forward.

Looking ahead, the Trust's management remains cautious, acknowledging the inherent risks associated with investing in a single asset class like ether. The Trust's future performance will depend on market conditions, regulatory developments, and the overall sentiment towards digital assets. The management emphasized that while the current environment presents challenges, there are also opportunities for recovery as the market stabilizes.