As the price war reaches Europe, Invesco and Wisdomtree cut fees on European ETPs

The spot Bitcoin exchange-traded fund (ETF) fee war has now reached Europe, weeks after asset managers received US Securities and Exchange Commission (SEC) approval to list their own ETFs on the stock market.

Before the Jan. 10 approval, all 11 applicants updated their S-1 form multiple times to reduce the EFF payment. A similar trend is now being observed in European-listed exchange-traded products (ETPs).

Two leading asset managers, Invesco and Wisdomtree, have cut fees by more than 60 percent on European-listed ETFs. The $137 million Invesco Physical Bitcoin ETP saw its fee decrease from 0.99 percent to 0.39 percent, while the $325 million Visdomtry Physical Bitcoin ETP saw a decrease from 0.95 percent to 0.35 percent.

In Europe, digital asset exchange-traded products are structured as exchange-traded notes (ETN) rather than cash. ETN investors own debt securities, while ETF shareholders own a piece of the fund's underlying assets.

The significant decrease in fees is due to increased competition and availability of leading financial markets in the US. Previously, US-based investors had to look to Canadian and European-based ETFs to invest, but with the approval of 11 ETFs in the US, demand for European ETFs from US investors has significantly decreased.

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In an interview with the Financial Times, Gary Buxton, Invesco's head of European ETFs, said “several” ETFs in the US have cut their fees to find a “new equilibrium between supply and demand”. Europe.

Compared to European ETFs, US-based Bitcoin ETFs are more liquid and available on one exchange, making them more accessible to European investors. Bitcoin ETFs, the newly launched space in the US, attracted billions of trades from day one, and even two weeks later, these ETFs continue to trade billions in daily volume.

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