(Bloomberg) -- Invesco and Galaxy Asset Management just fired the latest volley in the spot Bitcoin ETF fee war amid a crowded field.
The two firms announced Monday that the Invesco Galaxy Bitcoin ETF (ticker BTCO) will charge an eventual expense ratio 0.25%, down from 0.39% previously, according to a statement. The fund's fees are waived for the first six months or until it reaches $5 billion in assets.
It's the latest move in the nascent industry's already-established fee war, with issuers lowering their costs even before US regulators allowed the spot Bitcoin ETFs to launch earlier this month. Sector heavyweights BlackRock Inc. and Fidelity — with their distribution muscle — have broken away from the pack, with combined investor inflows of roughly $4 billion, or roughly 70% of total spot Bitcoin ETF inflows. Meanwhile, BTCO is in fifth place so far with an about $283 million haul.
Even with Monday's fee cut, BTCO still isn't the cheapest spot Bitcoin ETF on the market. Franklin Templeton's fund has a post-waiver 0.19% expense ratio — the lowest among spot-Bitcoin ETFs.
Shares of BTCO rose 2.8% on Monday, mirroring a similar increase in the price of Bitcoin.
(Updates the share price in the final paragraph. An earlier update corrected the third paragraph to say billion instead of trillion.)
More stories like this are available on bloomberg.com
©2024 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
