European Brokers Cut Fees on Spot Bitcoin ETFs to Outpace US Providers: FT

According to the Financial Times, European brokers are slashing spot Bitcoin ETF fees after Invesco and WisdomTree reduced theirs by over 60% on European BTC products.

The decision comes as the U.S. Securities and Exchange Commission (SEC) recently approved spot Bitcoin ETFs from major players like BlackRock, Fidelity, and Invesco, resulting in an influx of new investment options for U.S. investors.

Fee Wars Move to the European Market

Gary Buxton, Invesco’s Head of ETFs for Europe, the Middle East, Africa, and Asia Pacific, stated that the approval of spot Bitcoin ETFs led to an “unprecedented supply of new products” for U.S. investors. Previously, such investors had to look to Canadian or European providers for exchange-traded exposure to the cryptocurrency.

The competition in the U.S. market has prompted a wave of fee reductions, with “multiple” providers lowering fees as the market works to find a new equilibrium between supply and demand. As a result, the range of prices for spot Bitcoin ETFs in the U.S. is now “considerably lower” than existing tracking products in Europe, according to Buxton.

In response to the changing landscape, WisdomTree and Invesco have taken proactive measures by cutting fees on their European-listed Bitcoin ETPs by over 60%. WisdomTree’s Physical Bitcoin ETP fees will fall from 0.95% to 0.35%, while Invesco’s Physical Bitcoin ETP fees will drop from 0.99% to 0.39%. Both fee adjustments will take effect before the end of the month.

Impact on European Market

WisdomTree Europe head Alexis Marinof commented on the impact of the launch of spot Bitcoin ETFs in the U.S., stating that it had “captured a lot of attention in Europe.”

After the SEC’s decision, VanEck plans to intensify marketing efforts for its European crypto products. Martijn Rozemuller, CEO of VanEck’s European business, believes the SEC’s decision has boosted investor interest in cryptocurrency and positively impacted the firm’s brand in Europe.

Senior Investment Manager Peter Sleep noted that U.S.-listed products may be more attractive to European investors due to increased liquidity and a larger market.

Meanwhile, HanETF CEO Hector McNeil emphasized the importance of spreads, tax, and custody in investment decisions. He notes that U.S. ETF price wars have settled around 30 basis points, making it challenging for providers to be profitable unless they attract significant assets under management.