Invesco and Galaxy Asset Management Reduce Sponsor Fee on Spot Bitcoin ETF
Invesco and Galaxy Asset Management have announced that they are lowering the sponsor fee on their spot bitcoin ETF. Despite being ranked sixth in terms of trading volumes, the product has seen over $280 million in buying and selling activity and has a significant amount of assets under management. In an effort to improve its competitiveness, the fund’s fee will be reduced from 0.39% to 0.25%. This adjustment will align Invesco and Galaxy’s spot bitcoin ETF with most of its rivals, making it more attractive to investors.
Lowered Fee Puts Invesco and Galaxy on Par with Competitors
According to Bloomberg Intelligence ETF analyst James Seyffart, the new fee rate will make Invesco and Galaxy’s spot bitcoin ETF comparable to its competitors. Currently, Grayscale’s ETF is the most expensive among the newly launched products, while Franklin Templeton’s fund is the cheapest. The move by Invesco and Galaxy to lower their fee aims to position their product more favorably in the market.
Fee Waived for Assets up to $5 Billion
In addition to the reduced sponsor fee, Invesco has also announced that it will waive BTCO’s entire fee on assets up to $5 billion for the first six months of operation. This brings the total expense ratio of BTCO to 0 basis points, with the possibility of extending the fee waiver further. By offering this incentive, Invesco aims to attract more investors and increase its market share in the growing spot bitcoin ETF market.
Hot Take: Invesco and Galaxy Lower Sponsor Fee on Spot Bitcoin ETF
In an effort to enhance their competitive edge, Invesco and Galaxy Asset Management have decided to reduce the sponsor fee on their spot bitcoin ETF. With this adjustment, their product will be more in line with its rivals, making it an attractive option for investors. Additionally, Invesco will waive the entire fee on assets up to $5 billion for the first six months of operation, further incentivizing potential investors. This move by Invesco and Galaxy demonstrates their commitment to capturing a larger market share in the spot bitcoin ETF industry.
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