Summary
CoinShares, a digital asset management firm, has announced that it will reduce the annual fee on its physically backed bitcoin exchange-traded product (ETP) from 0.98% to 0.35%. This move follows similar fee reductions by rival firms WisdomTree and Invesco. The decrease in fees comes after the recent launch of spot bitcoin funds in the US, which have seen significant inflows. CoinShares expects that the reduction in fees will be offset by the growth in assets under management as the crypto market continues to mature.
Key Points
1. CoinShares and rival WisdomTree have both announced plans to reduce fees on their European bitcoin exchange-traded products (ETPs) in response to the launch of spot BTC funds in the US. CoinShares will lower its annual fee from 0.98% to 0.35% on February 1, while WisdomTree reduced fees on its bitcoin and ethereum ETPs from 0.95% to 0.35%, and also cut fees on six other products.
2. The Securities and Exchange Commission’s approval of funds that hold bitcoin directly has sparked discussions about retail and institutional demand for cryptocurrencies. The US spot bitcoin ETFs have seen net inflows of $824 million after just nine days of trading, with combined net inflows of about $5.2 billion when excluding outflows from Grayscale Investments’ Bitcoin Trust ETF (GBTC).
3. In addition to the fee reductions, fund giant Invesco also lowered the fee for its Physical Bitcoin ETP from 0.99% to 0.39%. CoinShares recently exercised its option to acquire the fund arm of Valkyrie Investments, which launched a US spot bitcoin fund. Franklin Templeton currently offers the lowest fee for a US spot bitcoin ETF at 0.19%.