Invesco and Galaxy Asset Management announced Monday they are cutting sponsor fees for their new spot Bitcoin ETF.
Spot Bitcoin ETFs from Grayscale, BlackRock and Fidelity dominated trading volume in the fast-growing market, while products from Invesco and Galaxy ranked sixth with more than $280 million in buying and selling activity. Additionally, the capital of the assets under management is approximately the same.
According to the filing, Invesco and Galaxy Asset Management plan to cut fund fees from 0.39% to 0.25% in a move that could improve competitiveness.
The newly lower interest rates will reportedly put Invesco and Galaxy’s spot Bitcoin ETFs on par with most of their competitors. published data Written by Bloomberg Intelligence ETF analyst James Seyffart. Grayscale’s ETF is currently the most expensive of the new products that began trading earlier this month. Franklin Templeton’s fund is the cheapest.
Fee exemption for assets up to $5 billion
The two companies said: “Invesco will continue to waive BTCO’s total fees on up to $5 billion of its assets for the first six months of BTCO’s operations, bringing BTCO’s total expense ratio to 0 basis points, and will extend the fee waivers further at its discretion.” He said. In an SEC filing.
BlackRock and Fidelity’s products (newer products like Invesco and Galaxy) have AUM of about $2 billion each, compared to BTCO’s approximately $287 million in assets under management.
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RT Watson is a senior reporter at The Block, covering a variety of topics including US-based companies, blockchain games, NFTs, and more. He previously covered entertainment for The Wall Street Journal, writing about Disney, Netflix, Warner Bros. and the creator economy, focusing primarily on technological disruption across media. Previously, she covered corporate, economic and political news in Brazil at Bloomberg. She interviewed a variety of figures for RT, including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers, and convicted criminals. She holds a Master’s degree in Digital Sociology.