Invesco CurrencyShares British Pound Sterling Trust

International and currency · Foreign exchange and currency exposure

The British Pound Sterling/USD exchange rate, like foreign exchange rates in general, can be volatile and difficult to predict. This volatility could materially and adversely affect the performance of the Shares.

Market and investment · Asset valuation and impairment

The Shares may trade at a price which is at, above, or below the NAV per Share. The NAV per Share fluctuates with changes in the market value of the Trust's assets. The market price of Shares can be expected to fluctuate in accordance with changes in the NAV per Share, but also in response to market supply and demand.

Market and investment · Interest rate and yield curve risk

If interest earned by the Trust does not exceed the Trust's expenses, the Trustee will withdraw British Pounds Sterling from the Trust to pay these excess expenses, which will reduce the amount of British Pounds Sterling represented by each Share on an ongoing basis.

Credit and liquidity · Liquidity and cash flow constraints

Disruptions in the ability to create and redeem Baskets may adversely impact the price of the Shares. If the Trust were to issue all Shares that have been registered or if the Trust does not have an effective registration statement with the SEC with sufficient Shares available, the Trust would not be able to create new Baskets.

Credit and liquidity · Banking relationships and credit facilities

If the Depository becomes insolvent, its assets may not be adequate to satisfy a claim by the Trust or any Authorized Participant. In addition, in the event of the insolvency of the Depository or the U.S. bank of which it is a branch, there may be a delay and costs incurred in recovering the British Pounds Sterling held in the Deposit Accounts.

Market and investment · Market volatility and economic cycles

The value of the Shares relates directly to the value of the British Pound Sterling held by the Trust. Fluctuations in the price of the British Pound Sterling could materially and adversely affect the value of the Shares.

Geopolitical and trade · International conflicts and tensions

International Armed Conflicts May Result in Volatility in Currency Prices that Could Adversely Affect the Fund's Performance. As a result of increasingly interconnected global economies and financial markets, armed conflict between countries or in a geographic region, including related geopolitical tensions or emergency measures, may impact the value of the currencies held by the Fund.

Geopolitical and trade · Trade policies tariffs and sanctions

Changes to United States tariff and trade policies may increase the volatility of foreign exchange rates. The United States, under the Trump administration, has implemented significant tariff increases on imports from a large number of countries, affecting a broad array of goods.

Geopolitical and trade · Regulatory and policy uncertainty

Ongoing changes in the United Kingdom's trade, regulatory and economic relationships following the United Kingdom's withdraw from the European Union may adversely affect the value of the Shares. Although the formal withdrawal has occurred, the United Kingdom's post-exit framework, including trade agreements, financial services, immigration and regulatory policy, continue to evolve.

Cybersecurity and data protection · Third party data security and vendors

Cyber security failures or breaches of the Trust's third party service providers (including, but not limited to, the Trustee and the Sponsor) have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, the inability of Shareholders or Authorized Participants to transact business in Shares and Baskets respectively.

Information management · Technology vendor dependence

Since the Trust is dependent upon third party service providers (including the Sponsor and Trustee) for substantially all of its operational needs, the Trust is subject to the risk that a cyber attack on a service provider will materially impair its normal operations.

Technology infrastructure · Technology systems and infrastructure failure

With the increased use of technologies such as the Internet and the dependence on computer systems to perform necessary business functions, the Trust is susceptible to operational and information security risks. Cyber attacks may also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks on websites.

Cybersecurity and data protection · Data breaches and cyber attacks

Due to the increased use of technologies, intentional and unintentional cyber attacks pose operational and information security risks. Cyber attacks include, but are not limited to gaining unauthorized access to digital systems for purposes of misappropriating assets or sensitive information, corrupting data, or causing operational disruption.

Core operations · Operational disruption and business continuity

Cyber security failures or breaches of the Trust's third party service providers have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, the inability of Shareholders or Authorized Participants to transact business in Shares and Baskets respectively.

Legal and litigation · Intellectual property disputes

The License Agreement with The Bank of New York Mellon may be terminated by The Bank of New York Mellon in the event of a material breach. If the License Agreement is terminated and one or more of The Bank of New York Mellon's patent applications issue as patents, then The Bank of New York Mellon may claim that the operation of the Trust violates its patent or patents and seek an injunction forcing the Trust to cease operation and the Shares to cease trading.