Invesco CurrencyShares British Pound Sterling Trust (NYSE: FXB)

Invesco CurrencyShares ® British Pound Sterling Trust is a grantor trust that issues shares designed to reflect the price in US dollars of the British Pound Sterling plus any accrued interest, less the trust’s expenses. The trust provides investors a simple cost effective means of gaining exposure to the British Pound Sterling through an exchange listed security. Shares are created and redeemed in blocks of 50,000, known as a Basket, in exchange for deposits of or for the receipt of British Pound Sterling. The trust holds the deposited British Pound Sterling with a depositary and does not use derivative products or engage in any activity to profit from changes in the currency’s price. It operates as a passive investment vehicle with no officers directors or employees. Each share represents a proportional interest in the British Pound Sterling held by the trust.

The trust’s primary source of income is interest earned on the British Pound Sterling deposits held with its depositary, JPMorgan Chase Bank N. A., London Branch. Interest accrues daily on the principal balance and is paid monthly to the trust. The depositary maintains two accounts, one that may earn interest and one that does not, and transfers accrued interest to the non interest bearing account to cover the sponsor’s fee and other trust expenses. When the interest deposited exceeds the sponsor’s fee and expenses for a given month, the excess is converted to US dollars at the prevailing market rate and distributed pro rata to shareholders as a monthly cash distribution. As of September 30, 2025, the annual nominal interest rate on the interest bearing deposit account was 2.66%. The sponsor’s fee is the only ordinary expense of the trust, and it is paid from the interest collected on the deposits.

The trust operates in the exchange traded currency product sector, competing with other single currency exchange traded funds that aim to replicate the performance of various foreign currencies. Notable competitors include products tracking the euro, Japanese yen, Swiss franc, Canadian dollar, and Australian dollar. The trust’s competitive advantages stem from its physical backing by actual British Pound Sterling, which provides transparency and eliminates counterparty risk associated with derivative based currency products. It offers a low expense ratio relative to many actively managed currency funds and allows investors to gain exposure through a security that trades like a stock on NYSE Arca with real time pricing and narrow bid ask spreads. The trust’s net asset value is calculated each business day using the closing spot rate determined by the WM Company at 4:00 PM London time and is published daily on the issuer’s website.

The trust serves both institutional and retail investors who seek exposure to the British Pound Sterling for purposes such as diversifying portfolios, hedging foreign currency risk, or taking tactical views on GBP movements. Institutional users may include asset managers, hedge funds, pension funds, and corporate treasurers that need to manage currency exposure arising from international operations or investments. Retail investors gain access through brokerage accounts and can buy or sell shares throughout the trading day like any other listed security. The filing does not disclose specific customer names, but the investor base is described as consisting of those looking for a simple cost effective way to participate in the British Pound Sterling market.