Spot Bitcoin ETF: Invesco Galaxy Lowers Fee on BTCO

Spot Bitcoin ETF issuers are taking the competition to another level with Invesco Galaxy’s latest move to lower its sponsor fees.

The Invesco Galaxy Fee Slash

According to a filing made to the United States Securities Exchange Commission (SEC) Invesco and Galaxy cut down the fees for their Bitcoin ETF from 39 basis points (bps) to only 25 bps, a reduction by 14 bps. This is in addition to the fee waiver to 0% which will last for the first six months after the spot Bitcoin ETF was launched. 

Senior Bloomberg ETF analyst James Seyffart also corroborated the news on X 

With the drop in fees, the Invesco Galaxy Bitcoin ETF now ranks amongst the likes of Fidelity’s FBTC, Valkyrie’s BRRR, and BlackRock’s IBTC in terms of fees after waiver. Top investment asset management firm Grayscale’s GBTC still has the highest fee at 1.5%. 

A few weeks ago, Michael Sonnenshein, Grayscale’s CEO attempted to defend the high GBTC fees, citing the trust’s impressive 10-year track record, extensive market liquidity, and Grayscale’s specialized focus as a crypto specialist. To buttress his point he took a jab at the lower fees from other spot Bitcoin ETF issuers, stating that it was only a tactic to attract customers.

Even with the Invesco Galaxy fee slash, Franklin Templeton’s EZBC remains the spot Bitcoin ETF with the lowest fee at 0.19%. This was after the asset manager went through a 10 bps reduction from 0.29%. 

This sponsor fee reduction move from Invesco Galaxy is expected to make the spot BTC ETF more attractive to investors as it becomes cost-effective. 

Marketing War Among Spot Bitcoin ETF Issuers

The silent marketing war between most issuers of the spot Bitcoin ETF issuers that were greenlighted earlier this year, is not entirely unexpected. Many experts predicted that such competitions were sure to happen as each of the issuers makes an effort to bag a significant share of the spot Bitcoin ETF market. 

Per the Invesco Galaxy filing with the U.S. SEC, further fee reductions could happen in the future, bringing the duo closer in competition with Franklin Templeton and even Bitwise. The reduction is a significant milestone for Invesco Galaxy because their spot BTC ETF has lagged in terms of commutative volume since its launch.