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

According to the Financial Times, European brokers are cutting Bitcoin ETF fees after Invesco and Wisdomtree cut their stakes in European BTC products by more than 60%.

The decision comes as the US Securities and Exchange Commission (SEC) recently approved Bitcoin ETFs from major players such as BlackRock, Fidelity and Invesco, giving US investors a flood of new investment options.

Payment wars go to the European market

Gary Buxton, Invesco's head of ETFs for Europe, the Middle East, Africa and Asia Pacific, said the approval of the space's Bitcoin ETFs has created “unprecedented access to new products” for US investors. Previously, such investors had to seek Canadian or European providers for exposure to cryptocurrency exchanges.

Competition in the US market has led to significant pay cuts, with “several” providers cutting pay as the market works to find a new balance between supply and demand. As a result, the price range for spot Bitcoin ETFs in the US is now “much lower” than the tracking products in Europe, according to Buxton.

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

Impact on the European market

Alexis Marinoff, head of Wisdomtree Europe, commented on the impact of the launch of the spot Bitcoin ETFs in the US, saying, “It has attracted a lot of attention in Europe.”

After the SEC decision, VanEck plans to step up marketing efforts for its European crypto products. Martijn Rosemüller, CEO of Van Eyck's European business, believes that the SEC's decision has increased investors' interest in cryptocurrency and has negatively affected the company's brand in Europe.

Senior investment manager Peter Slip said US-listed products could be more attractive to European investors due to increased liquidity and a wider market.

Meanwhile, HanETF CEO Hector McNeil emphasized the importance of diversification, tax and protection in investment decisions. US ETFs noted that price wars have stalled around 30 basis points, making it challenging for providers to remain profitable unless they attract significant assets under management.