Invesco and Galaxy Asset Management have announced a reduction in the fee for their spot bitcoin exchange-traded fund (ETF). The fee for the Invesco Galaxy Bitcoin ETF (BTCO) has been lowered from 0.39% to 0.25%. This move brings the sponsor fee in line with that of most other issuers in the market.
However, it is worth noting that there are a few issuers who offer even lower fees compared to their peers. These include Ark and 21Shares, Bitwise, and Franklin Templeton. Despite this, Invesco’s decision to lower the fee is a significant step towards making their ETF more competitive in the market.
In addition to the fee reduction, Invesco has also announced that it will continue to waive fees for the first six months or until the fund reaches $5 billion in assets. This is a strategic move to attract more investors and increase the fund’s assets under management.
It is important to highlight that Invesco’s bitcoin spot ETF has had a slightly slower start compared to some other traditional finance (TradFi) issuers of the same caliber. For instance, BlackRock and Fidelity attracted approximately $2 billion in total volume within the first 11 days of their ETF launches.
Since its inception, Invesco’s bitcoin spot ETF has only seen a little over $280 million in inflows into its fund. This indicates that there is still room for growth and improvement for the fund. By reducing the fee and offering fee waivers, Invesco aims to attract more investors and increase the fund’s popularity.
Overall, Invesco’s decision to lower the fee of its bitcoin ETF is a positive development for the cryptocurrency market. It not only makes the fund more competitive in terms of fees but also demonstrates Invesco’s commitment to attracting more investors and growing its assets under management. As the ETF race continues to heat up, it will be interesting to see how Invesco’s bitcoin spot ETF performs in the coming months.