Industry Updates

Invesco slashes fee on physical bitcoin ETP

In response to the launch of cheaper spot bitcoin ETFs in the US

Lauren Gibbons


Invesco has slashed the fee of its physically-backed bitcoin exchange-traded product (ETP) following the simultaneous launch of 11 spot bitcoin ETFs in the US.

The US giant reduced the fee on the Invesco Physical Bitcoin ETP (BTIC) – listed on the Deutsche Boerse – from 0.99% to 0.39%.

The move places BTIC closer to Europe’s cheapest physical bitcoin ETP – the 21Shares Bitcoin Core ETP (CBTC) – which has a total expense ratio (TER) of 0.21%.

Invesco said the move was in response to the launch of spot bitcoin ETFs in the US with much lower fees.

Gary Buxton, head of EMEA and APAC ETFs and indexed strategies at Invesco, said: "The newly-launched US products carry a range of prices that is considerably lower than those available on the existing European-domiciled bitcoin trackers.

"Such a fundamental change in the market dynamics in the US will, naturally, impact the EMEA-based institutional and professional investors for whom our Invesco Physical Bitcoin ETP is intended. In light of this, we have chosen to reduce the fee on our EU domiciled Invesco Physical Bitcoin product."

The US-listed Invesco Galaxy Bitcoin ETF (BTCO) has a TER of 0% for the first six months or up to $5bn assets, followed by a 0.30% fee.

Multiple bitcoin ETF providers lowered their fees in the run up to the Securities and Exchange Commission's (SEC) approval.

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

Invesco entered the cryptocurrency ETP space in Europe with BTIC in November 2021, tracking the CoinShares Bitcoin Hourly Reference Rate index to deliver the price performance of the underlying minus fees.

BTIC has brought in handsome returns over the last year in light of bitcoin seeing its value more than double in 2023.

More specifically, crypto ETPs saw inflows of $2.3bn last year, up from $830m in 2022 – of which bitcoin made up 87% of new assets – boosted by investor sentiment surrounding a potential spot bitcoin ETF approval in the US.

Other recent news from the asset manager came last month, when it expanded its sales team with the appointment of Joe Bello as UK head of ETF asset managers from BlackRock.

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