- Invesco and Galaxy Asset Management recently cut the fee on their spot bitcoin ETF from 0.39% to 0.25% to match competitors. This signals increasing competition in the spot bitcoin ETF space.
- Invesco will waive the 0.25% fee on the first $5 billion in assets for the first 6 months to attract investment dollars. Fees may continue dropping as competition increases.
- Invesco and Galaxy’s spot bitcoin ETF has $287 million in assets under management, compared to over $2 billion for competitors like BlackRock and Fidelity. Lowering fees aims to make their ETF more competitive.
The spot bitcoin ETF market is becoming more competitive as providers cut fees to attract investors. Invesco and Galaxy recently slashed fees on their spot bitcoin ETF to be more in line with competitors.
Invesco and Galaxy Cut Fees on Spot Bitcoin ETF
Invesco and Galaxy Asset Management announced they are reducing the fee on their spot bitcoin ETF from 0.39% to 0.25%, according to an SEC filing. The lowered rate matches most competitor ETFs and puts Invesco and Galaxy’s products on par with other major spot bitcoin ETFs.
Invesco and Galaxy’s ETF has about $287 million in assets under management. Competitors like BlackRock and Fidelity have over $2 billion in assets in their new spot bitcoin ETFs.
Fee Waived on First $5 Billion in Assets
Invesco will waive the entire 0.25% fee on the first $5 billion in assets for the first 6 months of the ETF’s operations. This brings the total expense ratio down to 0 basis points initially. Invesco can extend the fee waiver further.
Conclusion
The spot bitcoin ETF space is becoming more competitive on fees as providers aim to attract investment dollars. Invesco and Galaxy lowering fees to match competitors indicate a race to offer the most economical spot bitcoin ETF. As more firms launch spot bitcoin ETFs, fees may continue to drop across the industry.
