Spot bitcoin ETF race heats up as Invesco and Galaxy slash fee
Quick Take
- Invesco and Galaxy’s spot bitcoin ETF, which has remained at the middle of the pack among the new crypto-based funds, is dropping its fee from 0.39% to to 0.25%, according to an SEC filing.
- The new rate, which doesn’t come into effect for months, will put the firms’ ETF on par with most competitors.
Invesco and Galaxy Asset Management said Monday that they are cutting the sponsor fee on their new spot bitcoin ETF.
While spot bitcoin ETFs offered by Grayscale, BlackRock and Fidelity have dominated trading volumes in the burgeoning market, Invesco and Galaxy's product has ranked sixth with more than $280 million in buying and selling activity. It also has about the same amount of capital in assets under management.
In a move that could improve its competitive edge, Invesco and Galaxy Asset Management will cut their fund's fee from 0.39% to to 0.25%, according to a filing.
The new, lowered rate will put Invesco and Galaxy's spot bitcoin ETF on par with most rivals, according to data posted by Bloomberg Intelligence ETF analyst James Seyffart. Grayscale's ETF is currently the priciest of the new products which began trading earlier this month. Franklin Templeton's fund is the cheapest.
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Fee waived on assets up to $5 billion
"Invesco continues to waive BTCO’s entire fee on assets up to $5 billion for BTCO’s first six months of operations, effectively bringing the total expense ratio of BTCO to 0 basis points, with the discretion to extend the fee waiver further," the two firms said in their SEC filing.
In comparison to BTCO's roughly $287 million in assets under management, BlackRock and Fidelity's products — brand new instruments like Invesco and Galaxy's — each have about $2 billion in AUM.
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