In a bid to attract more investors, Invesco and Galaxy Asset Management have announced a reduction in the fee of their spot Bitcoin exchange-traded fund (ETF), Invesco Galaxy Bitcoin ETF (BTCO), from 0.39% to 0.25%. This move brings the sponsor fee for BTCO in line with most other issuers in the market.
Only a handful of issuers, including Ark and 21Shares, Bitwise, and Franklin Templeton, offer lower fees than Invesco and Galaxy Asset Management. To further incentivize investors, Invesco has stated that it will continue to waive fees for the first six months or until the fund reaches $5 billion in assets.
Despite being one of the first traditional finance institutions to launch a spot Bitcoin ETF, Invesco has had a slower start compared to some of its peers. BlackRock, for example, attracted over $2 billion in total assets under management in the first 11 days since the ETF was launched. Since its inception, Invesco’s bitcoin spot ETF has seen inflows of just over $280 million. The lower fee structure is a strategic move to attract more investors and increase the fund’s assets under management.
The fee reduction is a positive development for investors seeking exposure to Bitcoin through a regulated and transparent investment vehicle. Lower fees can lead to higher returns over time, making BTCO a more attractive option for long-term investors.