Asset management giant Invesco has partnered with Mike Novogratz’s Galaxy Digital to develop a range of cryptocurrency-linked exchange-traded funds (ETFs).
In a September 22 press statement, the companies said they aimed to develop “a comprehensive suite” of physically-backed digital asset ETFs. Notably, the plan is to have these products listed in the United States – a goal that has thus far eluded their rivals.
“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, in a statement.
Galaxy Digital, which boasts $2.1 billion in assets under management, is expanding its business with the aim of offering clients exposure “to every investable corner of the crypto and blockchain ecosystems,” according to the press release.
Invesco’s ETF and index business has more than doubled its assets under managed to $471 billion over the last three years. In 2019, the company launched a product called the Invesco Elwood Global Blockchain Equity UCITS ETF, which sought to give investors exposure to listed companies generating earnings from blockchain technology.
The index amassed over $1 billion in assets under management but was sold to CoinShares in July after Invesco’s partner Elwood Technologies (which is owned by British billionaire Alan Howard) pivoted away from asset management.