tl;dr
Invesco and Galaxy have announced a reduction in the fees of their Bitcoin ETF (BTCO), with the expense ratio dropping to 0.25% from the original 0.39%. The fees will be waived for the first six months or until the fund reaches $5 billion in assets. Despite this reduction, data shows that BTCO is no...
Investment management companies Invesco and Galaxy have announced a reduction in the fees of their Bitcoin ETF (BTCO) from 0.39% to 0.25%, and the fees will be waived for the first six months or until the fund reaches $5 billion in assets.
However, despite this fee deduction, data shows that BTCO is not the cheapest Spot Bitcoin ETF on the market, with Franklin Templeton's Bitcoin ETF offering a 0.19% expense ratio post-waiver. BTCO saw a 2.8% increase in shares on the day of the announcement, in line with Bitcoin's price increase of 2.9% in the last 24 hours. Yet, it ranks fifth in terms of inflows, with Grayscale Bitcoin Trust Fund holding the highest fees.
It's worth noting that Grayscale has sold 120,500 BTC, equivalent to almost $5.5 billion, since the ETF approvals. This has led to speculation about investors withdrawing their money from GBTC due to Grayscale’s high management fees, which are five to six times higher than fees charged by other ETF issuers.
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