Invesco and Galaxy Slash Fees in Competitive Spot Bitcoin ETF Market

Invesco and Galaxy ETF Fee Slashed in Response to Intense Market Competition

Responding to the fierce competition in the spot bitcoin ETF market, Invesco and Galaxy Asset Management have lowered the long term fee of their joint BTCO fund, positioning it more competitively against sector heavyweights.

Invesco and Galaxy ETF Fee Slashed in Response to Intense Market Competition

In a strategic move to gain traction in the highly competitive spot bitcoin exchange-traded fund (ETF) market, Invesco and Galaxy Asset Management have reduced the fee for their joint spot bitcoin ETF, the Invesco Galaxy Bitcoin ETF (BTCO). This decision, announced on Monday, marks the latest move in the ongoing fee war amongst issuers of this new financial product.

The fee reduction brings BTCO’s expense ratio down from 0.39% to 0.25%. Additionally, Invesco has announced a waiver of these fees for the first six months or until the ETF reaches $5 billion in assets under management (AUM). This aggressive pricing strategy aims to bolster the fund’s appeal among investors and compete more effectively with dominant players in the sector.

Despite the fee cut, BTCO is not the lowest-cost option in the market. Franklin Templeton’s spot bitcoin ETF holds this distinction with a post-waiver expense ratio of 0.19%. However, the reduced fee places BTCO in a more competitive position against other industry players. Notably, Grayscale’s ETF remains the most expensive among the new offerings and is experiencing significant outflows.

Since the U.S. regulators green-lighted the launch of spot bitcoin ETFs earlier this month, there has been a noticeable shift in investor inflows. Industry giants such as Blackrock Inc. and Fidelity have captured a significant market share, attracting combined inflows of approximately $4 billion, representing roughly 70% of the total spot bitcoin ETF inflows. In contrast, BTCO has about $283 million.

Despite the competitive landscape, shares of BTCO experienced a 2.8% increase on Monday, mirroring a similar uptick in the price of bitcoin. This uptrend suggests a positive investor response to the fund’s new pricing strategy.

How low do you think the fees on these spot bitcoin ETFs will eventually settle at? Share your thoughts and opinions about this subject in the comments section below.



from Bitcoin News https://ift.tt/tCsphie

Comments

Post a Comment

Popular posts from this blog

13 Years Ago Today, Satoshi Nakamoto Published the First Forum Post Introducing Bitcoin

Image
13 years ago today, the creator of the Bitcoin network, Satoshi Nakamoto published the inventor’s first forum post on the P2P Foundation website. The forum post called “Bitcoin open source implementation of P2P currency” introduced the e-cash system to the members of the advocacy and research forum focused on peer-to-peer dynamics in society. The First of 3 February 2009 Forum Posts Introducing Bitcoin There was three occasions in February 2009 when Satoshi Nakamoto introduced the inventor’s Bitcoin white paper and open source codebase to the P2P Foundation forum members. The occasion on February 11, 2009, was the first time the creator of Bitcoin publicly announced the project using the P2P Foundation forum. Prior to these instances during the month of February, Nakamoto leveraged the email system tethered to the cryptography mailing list hosted on metzdowd.com . The introductory forum post is quite fascinating, and the inventor also leaves a link to the software’s first version
Read more

ATPBot Launches the Easiest Automated Crypto Trading Bot for Investors

Image
PRESS RELEASE. ATPBot, the renowned leader in quantitative trading strategy development, proudly introduces its revolutionary auto trading bot to the cryptocurrency market. This cutting-edge bot boasts a user-friendly interface and a proven set of features, designed to cater to both novice and seasoned traders alike. ATPBot leverages the power of artificial intelligence to create and implement winning quantitative trading strategies. Supported by rigorously tested and proven methods, the bot offers meticulous backtest data, instilling investors with confidence in their trading endeavors. The auto trading bot simplifies the complex trading landscape into just three steps: Connect, Select, Run! By connecting to a crypto exchange API, users can effortlessly choose a strategy and set the investment amount. With a single click of the “Run” button, the AI bot takes over, tirelessly working 24/7. ATPBot’s brilliance lies in its constant strategy adjustments, fueled by extensive histori
Read more

Jupiter’s JUP Token Makes a Grand Entry With $700M Airdrop on Solana Blockchain

Image
Jupiter successfully launched its JUP token. The airdrop, one of the largest in crypto history, distributed an astounding $700 million worth of JUP tokens to almost a million wallet holders. Jupiter’s JUP Token Airdrop Distributes to Nearly a Million Users The cryptocurrency world witnessed one of the largest token airdrops in its history on Jan. 31, as Jupiter, a Solana-based decentralized trading aggregator, launched its native token, JUP. The event distributed approximately $700 million worth of JUP tokens to nearly a million wallets. Jupiter’s founder, known pseudonymously as weremeow on X, announced the launch details in a forum post, revealing that the initial circulating supply of JUP would be 1.35 billion tokens, a reduction from the previously projected 1.7 billion. This adjustment brought the total supply to 10 billion JUP tokens, split evenly between team and community wallets. The airdrop constituted 10% of the total supply, amounting to 1 billion JUP. The distributi
Read more