WisdomTree is the latest issuer to cut fees on its physical bitcoin exchange-traded product (ETP) in response to the launch of cheaper spot bitcoin ETFs in the US.
The US asset manager cut the total expense ratio (TER) on the WisdomTree Physical Bitcoin ETP (BTCW) from 0.95% to 0.35%, as part of a wider fee reduction across eight of its crypto ETPs.
Earlier today, Invesco announced it is cutting the TER on the Invesco Physical Bitcoin ETP (BTIC) from 0.99% to 0.39%.
The simultaneous approval of 11 spot bitcoin ETFs in the US has ignited a fee war in Europe as issuers hope to capitalise on anticipated increased institutional demand.
While BTCW undercuts BTIC by four basis points (bps), it is still more expensive than Europe’s cheapest physical bitcoin ETP – the 21Shares Bitcoin Core ETP (CBTC) – which has a TER of 0.21%.
Fee reductions will also take place across WisdomTree’s ethereum, solana, cardano and polkadot ETPs as well as three crypto basket products.
Chart 1: WisdomTree's crypto ETP fee cuts
ETP name | Ticker | New TER | Old TER |
|---|---|---|---|
BTCW | 0.35% | 0.95% | |
ETHW | 0.35% | 0.95% | |
SOLW | 0.50% | 0.95% | |
ADAW | 0.50% | 0.95% | |
DOTW | 0.50% | 0.95% | |
MEGA | 0.40% | 0.95% | |
BLOC | 0.70% | 1.45% | |
WALT | 0.70% | 1.45% |
Source: WisdomTree
Alexis Marinof (pictured), head of Europe at WisdomTree, commented: “The launch of spot bitcoin ETFs in the US is helping the crypto market to evolve as the asset class continues to stake a claim for a place in client portfolios.
“WisdomTree’s diversified and scalable business allows us to offer crypto ETPs with highly competitive fees while delivering superior products that do not participate in the risky practice of crypto lending.”
Despite the reduction, BTCW is still more expensive than its US counterpart.
The WisdomTree Bitcoin Fund has a 0% fee for the first six months for up to $1bn in assets, at which point its TER will be priced at 0.29%.
Multiple bitcoin ETF providers lowered their fees in the run-up to the Securities and Exchange Commission's (SEC) approval, while also offering fee waivers as they vied for assets under management.
Europe’s cheapest bitcoin ETP is the Valour Bitcoin Zero SEK (BTC0E) with a management fee of 0%, though this is synthetically replicated.
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.
