In a strategic move, Invesco and Galaxy Asset Management have reduced the fee for their spot Bitcoin exchange-traded fund (ETF) from 0.39% to 0.25%, as revealed in the joint announcement on Monday.
This adjustment aligns the sponsor fee for the Invesco Galaxy Bitcoin ETF (BTCO) with the prevailing rates offered by most other issuers in the market. Notably, only Ark, 21Shares, Bitwise, and Franklin Templeton provide lower fees compared to their counterparts. In a bid to attract investors, Invesco has also committed to waiving fees for the initial six months or until the fund reaches $5 billion in assets, as outlined in the statement.
Despite the fee reduction initiative, Invesco faces competition from other traditional finance (TradFi) issuers, such as BlackRock and Fidelity, both of which achieved approximately $2 billion in total volume within the first 11 days of their ETF launches. In contrast, Invesco’s bitcoin spot ETF has experienced modest inflows, totaling just over $280 million since its inception.
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