Invesco and Galaxy Asset Management have made a pivotal move in the cryptocurrency market by reducing the sponsor fee of their spot bitcoin ETF, as detailed in a recent SEC filing. This reduction, from 0.39% to 0.25%, aims to bolster the competitiveness of their product in a market dominated by giants like Grayscale, BlackRock, and Fidelity. The Invesco-Galaxy ETF, though currently ranking sixth with $280 million in trading activities and equal assets under management, stands to gain from this strategic fee cut.
This pricing adjustment places their bitcoin ETF in direct competition with the industry’s lower-fee products, as observed by Bloomberg Intelligence ETF analyst James Seyffart. Further enhancing their competitive edge, Invesco and Galaxy have committed to waiving the total expense ratio for BTCO on assets up to $5 billion for the first six months, potentially reducing it to zero. This aggressive pricing strategy is a clear signal of Invesco and Galaxy’s determination to claim a significant stake in the dynamic crypto ETF market.