Invesco cuts fee on physically backed Bitcoin ETP

Jan 22nd, 2024 | By | Category: Alternatives / Multi-Asset

Invesco has significantly reduced the expense ratio of its Invesco Physical Bitcoin ETP (BTIC) from 0.99% to 0.39%.

Invesco cuts fee on physically backed Bitcoin ETP

European crypto ETP providers appear to be starting a price war.

Listed on both Deutsche Boerse and SIX Swiss Exchange, BTIC closely tracks Bitcoin’s price movements by following the CoinShares Bitcoin-Reference Rate.

Each share of BTIC is fully backed by actual Bitcoin, secured through Zodia Custody’s institutional-grade custody solutions, a UK-based digital asset custodian compliant with the FCA’s Anti-Money Laundering Regulations.

Invesco’s fee reduction coincides with a similar move from WisdomTree which slashed the fees across its entire range of single and multi-crypto ETPs in Europe, including lowering the expense ratio of the WisdomTree Physical Bitcoin (BTCW) from 0.95% to just 0.35%.

These adjustments indicate the beginning of a potential fee war among crypto ETP providers in Europe, especially following the SEC’s recent approval of spot bitcoin ETFs in the US.

Notably, the 21Shares Bitcoin Core ETP (CBTC), Europe’s most cost-effective directly backed Bitcoin ETP, maintains an even lower expense ratio of 0.21%. Launched in July 2022, CBTC achieves this low cost partly through collateralized lending agreements to offset operational expenses, a strategy that may warrant careful consideration by prospective investors to fully understand the associated risks.

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