Fidelity slashes fee on Europe-listed bitcoin ETP

Feb 19th, 2024 | By | Category: Alternatives / Multi-Asset

Fidelity has joined the ranks of European asset managers slashing fees on their directly backed bitcoin ETPs in a bid to attract growing institutional interest.

Fidelity slashes fee on Europe-listed bitcoin ETP

European crypto ETP providers have entered into a price war.

The Fidelity Physical Bitcoin ETP (FBTC GY) now comes with an expense ratio of just 0.35%, down from 0.75%.

The fee reduction is part of intensifying price competition among crypto ETP issuers in Europe, especially in the wake of the SEC’s recent nod to spot bitcoin ETFs in the US. Competitors like WisdomTree, CoinShares, and Invesco have also trimmed their bitcoin ETP fees to between 0.35% and 0.39% in recent weeks.

Meanwhile, the 21Shares Bitcoin Core ETP (CBTC GY), which launched in July 2022, holds the title for the lowest-cost, directly backed bitcoin ETP in Europe at 0.21%, achieved in part through collateralized lending to cover operational costs, which poses additional considerations for investors.

All of the above products provide simplified, secure avenues for European investors to gain bitcoin exposure, with the crypto holdings safely stored in institutional-grade ‘cold storage’ facilities.

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