European Brokers Cut Fees on Spot Bitcoin ETFs to Outpace US Providers

The WisdomTree Bitcoin ETP fee has decreased to 0.35%, while the Invesco Bitcoin ETP fee has decreased to 0.39%. Adjustments effective before month-end.

According to the Financial Times, European brokers are lowering spot Bitcoin ETF costs after Invesco and WisdomTree cut them by more than 60% on European BTC ETFs.The decision comes as the Securities and Exchange Commission (SEC) recently approved spot Bitcoin ETFs from big firms such as BlackRock, Fidelity, and Invesco, creating a slew of new investment opportunities for US investors.

Fee Wars Move to the European Market

Gary Buxton, Invesco’s Head of ETFs for Europe, the Middle East, Africa, and Asia Pacific, noted that the introduction of spot Bitcoin ETFs resulted in an “unprecedented supply of new products” for US investors. Previously, such investors had to rely on Canadian or European suppliers for exchange-traded exposure to cryptocurrency.

The competition in the US market has resulted in a wave of charge reductions, with “multiple” suppliers decreasing fees as the market attempts to reach a new equilibrium between supply and demand. As a result, Buxton claims that the price range for spot Bitcoin ETFs in the United States is now “considerably lower” than that of existing tracking products in Europe.

WisdomTree and Invesco have responded to the changing landscape by cutting fees on their European-listed Bitcoin ETPs by over 60%. WisdomTree’s Physical Bitcoin ETP fees will decrease from 0.95% to 0.35%, while Invesco’s Physical Bitcoin ETP fees will decrease from 0.99% to 0.39%. Both fee adjustments will take effect before the end of the month.

Impact on European Market

WisdomTree Europe’s Alexis Marinof commented on the impact of the launch of spot Bitcoin ETFs in the United States, saying it has “captured a lot of attention in Europe.” Following the SEC’s decision, VanEck intends to step up marketing efforts for its European cryptocurrency products. Martijn Rozemuller, CEO of VanEck’s European business, feels the SEC’s ruling has increased investor interest in bitcoin and benefited the company’s brand in Europe.

Senior Investment Manager Peter Sleep stated that U.S.-listed products may be more appealing to European investors due to higher liquidity and a larger market size. According to HanETF CEO Hector McNeil, spreads, taxes, and custody are crucial considerations when investing.He observes that U.S. ETF price wars have stabilised at 30 basis points, making it difficult for providers to remain profitable unless they attract considerable assets under management.

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