Key Takeaways
- • Invesco Galaxy Bitcoin ETF has entered a digital assets custody agreement with The Bank of New York Mellon (BNYM), according to a statement filed with the SEC.
- • The agreement began November 6 and calls for BNY Mellon to establish and maintain segregated custody accounts holding the ETF's bitcoin.
- • The ETF's existing custody arrangement with Coinbase remains unchanged, with Invesco Capital Management LLC planning to use both custodians.
- • The five-year initial term auto-renews in one-year periods, and the trust indemnifies BNY Mellon against specified losses absent a failure to meet agreed standards.
Summary
Invesco Galaxy Bitcoin ETF has entered into a digital assets custody agreement with The Bank of New York Mellon (BNYM), according to a statement filed with the Securities and Exchange Commission. The agreement took effect on November 6 and requires BNY Mellon to establish and maintain segregated custody accounts for the safekeeping of the ETF's bitcoin holdings. Under the terms, BNY Mellon will control and secure these accounts and must maintain reasonable insurance policies and coverage.
Invesco Capital Management LLC, the sponsor of the ETF, stated that it plans to use the custodial services of both Coinbase and BNY Mellon for the trust's bitcoin. The ETF's existing arrangement with Coinbase remains unchanged following the new agreement, meaning the addition of BNY Mellon expands the fund's custodial relationships rather than replacing an existing provider.
The agreement has an initial term of five years and will automatically renew for successive one-year periods unless either party gives notice of non-renewal. It also includes an indemnification clause requiring the ETF to indemnify BNY Mellon and certain affiliates against specified losses, costs, expenses, damages, and liabilities arising from BNY Mellon's performance under the agreement. The indemnity does not apply where losses result from BNY Mellon's failure to meet the standards set out in the agreement.
The details are based on a press release included in the company's recent SEC filing.
Invesco Capital Management LLC, the sponsor of the ETF, stated that it plans to use the custodial services of both Coinbase and BNY Mellon for the trust's bitcoin. The ETF's existing arrangement with Coinbase remains unchanged following the new agreement, meaning the addition of BNY Mellon expands the fund's custodial relationships rather than replacing an existing provider.
The agreement has an initial term of five years and will automatically renew for successive one-year periods unless either party gives notice of non-renewal. It also includes an indemnification clause requiring the ETF to indemnify BNY Mellon and certain affiliates against specified losses, costs, expenses, damages, and liabilities arising from BNY Mellon's performance under the agreement. The indemnity does not apply where losses result from BNY Mellon's failure to meet the standards set out in the agreement.
The details are based on a press release included in the company's recent SEC filing.
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