Invesco Galaxy Lowers Bitcoin ETF Fee To Match BlackRock, Fidelity

Invesco Galaxy has dropped the fee for its bitcoin ETF, which trades under the ticker BTCO. 

The ETF is waiving its fee for either the first six months or first $5 billion of assets. The fee now stands at 0.25% — in line with BlackRock, Valkyrie, VanEck and Fidelity — down from 0.39%. 

Fees quickly became a way for bitcoin ETF issuers to stand out from the pack even before the Securities and Exchange Commission officially gave them the green light. 

Franklin Templeton’s bitcoin ETF, which trades under EZBC, has the lowest fee of the group at 0.19%. It also, however, has a waiver in place until Aug. 2, 2024 or $10 billion in assets. 

Outside of the US, Invesco also lowered the fee for its physical bitcoin ETP from 0.99% to 0.39%. The ETP is one of the firm’s European offerings. 

Earlier this month — before the official launch of the ETFs — Nate Geraci, president of The ETF Store, said that investors were the “clear winners” of the bitcoin ETF race. 

He told Blockworks in early January that the number of issuers with low fees “speaks to how brutally competitive this category will be.”

Competitiveness does seem to be at play when looking at the group’s flows. Since launch, Grayscale’s bitcoin ETF has had the highest number of outflows — topping nearly $5 billion. GBTC’s fee is the highest of the bunch at 1.5%. 

Last week, JPMorgan analysts estimated that $1.3 billion had shifted from GBTC to other spot bitcoin ETFs with lower fees.

The next highest fee, in comparison, is WisdomTree’s at 0.30%. 

Since launch, bitcoin ETFs have seen a high number of outflows. However, JPMorgan analysts said that the group saw roughly $15 million of net sales on Friday. 

“As we’ve been seeing transaction volumes slowing this past week, we think we are perhaps seeing indication of the hype around these ETFs abating and entering a perhaps more normalized flow environment,” analyst Kenneth Worthington wrote in a Monday note. 

VanEck’s crypto research head Matthew Sigel told Blockworks last week that the flows remained in line with the projections from his firm. 

Source: blockworks.co