Invesco and Galaxy Reduce Their Bitcoin ETF Fees; 0.25% Instead of 0.39%

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Invesco and Galaxy Reduce Their Bitcoin ETF Fees
  • Invesco and Galaxy are reducing the fees of their Bitcoin ETF (BTCO).
  • The Bitcoin ETF will charge an eventual expense ratio of 0.25% instead of 0.39%
  • The report highlighted that the fees will be waived for the first six months, or until the fund reaches $5 billion in assets.

Investment management companies Invesco and Galaxy announced on Monday that they would be reducing the fees of their Bitcoin ETF (BTCO), according to Bloomberg. 

The report claimed that the Invesco Galaxy Bitcoin ETF will charge an expense ratio of 0.25%, a decrease from the original 0.39%. Moreover, the announcement highlighted that the fund’s fees will be waived for the first six months, or until it reaches $5 billion in assets. 

Regardless of this fee deduction, data showed that BTCO isn’t the cheapest Spot Bitcoin ETF on the market. ETF Research Analyst James Seyffart shared a “fee table” that showed Franklin Templeton’s Bitcoin ETF charging a 0.19% expense ratio post waiver. With the waiver lasting until August 2 or until the fund reaches $10 billion in assets, Franklin’s ETF is reportedly the cheapest fund. 

Bitcoin ETF Funds Fees. Source: James Seyffart on X

Bloomberg added that the shares of BTCO rose 2.8% on the day of the announcement, mirroring a similar increase in Bitcoin’s price. CoinMarketCap’s data showed that Bitcoin’s price increased by 2.9% in the last 24 hours, reaching $43,380 at the time of writing. 

In terms of inflows, BTCO is in the fifth position, according to Bloomberg, with a $283 million inflow. BlackRock and Fidelity have combined investor inflows of approximately $4 billion, which amounts to 70% of the total Spot Bitcoin ETF inflows.

The ETF with the highest fees is Grayscale Bitcoin Trust Fund, and recent reports showed that the firm holds 496,573.8166 Bitcoins as of January 29. Recently, Grayscale has sold 120,500 BTC, equivalent to almost $5.5 billion, since the ETF approvals. 

Crypto trader, known as Ash Crypto, believed that investors were withdrawing their money from GBTC due to Grayscale’s high management fees. Reports mentioned that Grayscale’s yearly management fees are five to six times higher than fees charged by other ETF issuers.

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