Industry Updates

Fidelity cuts fee on bitcoin ETP

FBTC cut from 0.75% to 0.35%

Theo Andrew


Fidelity International is the latest asset manager to cut the fee on its bitcoin exchange-traded product (ETP).

The Fidelity Physical Bitcoin ETP (FBTC) has seen its total expense ratio (TER) reduced from 0.75% to 0.35%.

It comes as several crypto issuers including Invesco, WisdomTree and CoinShares all reduced the headline fee of their bitcoin ETPs after the launch of the 11 spot bitcoin ETFs in the US.

The launches have sparked a price war in Europe as asset managers hope to capitalise on institutional demand.

WisdomTree and Invesco slashed fees on their physical bitcoin ETPs last month, cutting them to 0.35% and 0.39%, respectively. CoinShares also reduced its fee to 0.35%.

Christian Staub, managing director Europe at Fidelity, said: “The recent approval of the first spot bitcoin ETFs in the US has spurred interest from investors in cryptocurrencies all over the world.

“We have had numerous conversations with clients over the past months as they are rightly asking for an efficient way to benefit from this trend. We are confident that our ETP's new pricing model will improve how we meet their renewed demand and give even more investors access to this asset class.”

The fee reduction places BITC closer to Europe’s cheapest physical bitcoin ETP – the 21Shares Bitcoin Core ETP (CBTC) – which has a TER of 0.21%.

Europe’s cheapest bitcoin ETP is the Valour Bitcoin Zero SEK (BTC0E) with a management fee of 0%, though this is synthetically replicated.

FBTC listed in February 2022 and has $25m assets under management (AUM).

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