Invesco Galaxy Bitcoin ETF Now Reduces Sponsor Fee To %0.25

Key Points:

• Invesco and Galaxy Asset Management cut the Invesco Galaxy Bitcoin ETF expense ratio from 0.39% to 0.25%.
• This move aligns with industry trends toward lowering costs, preceding the recent approval of spot Bitcoin ETFs by U.S. regulators.

Invesco and Galaxy Asset Management have intensified the ongoing fee competition in the burgeoning spot Bitcoin ETF market.

In a joint announcement on Monday, the firms revealed a significant reduction in the expense ratio for the Invesco Galaxy Bitcoin ETF (ticker BTCO). The ETF will now impose a 0.25% expense ratio, down from its previous 0.39%, with fees waived for the initial six months or until it accumulates $5 billion in assets.

Beyond the U.S., Invesco has also slashed the fee for its European-based physical Bitcoin ETP from 0.99% to 0.39%. This strategic move aligns Invesco with other major issuers, leveling the playing field in the ongoing fee war that predates the recent approval of spot Bitcoin ETFs by U.S. regulators.

Read more: Bitcoin Spot ETF Applications: A Comprehensive List of All Companies, Including Wall Street

Invesco Galaxy Bitcoin ETF Adjusts Expenses Amid Industry-wide Cost Competition

Despite this fee adjustment, the Invesco Galaxy Bitcoin ETF remains positioned as the fifth-largest in terms of total assets, boasting approximately $283 million. Notably, sector giants BlackRock and Fidelity lead the pack, amassing a combined 70% of total spot Bitcoin ETF inflows, totaling around $4 billion.

It’s worth mentioning that even with this reduction, Invesco’s offering is not the most cost-effective spot Bitcoin ETFs available. Franklin Templeton’s bitcoin ETF (EZBC) currently holds that title with a 0.19% fee, further sweetened by a fee waiver until August 2, 2024, or until it reaches $10 billion in assets.

As of now, only 21Shares, Bitwise, and Franklin Templeton boast lower fees compared to their counterparts in this highly competitive market.