Invesco and WisdomTree have significantly slashed European exchange-traded products (ETPs) fees. This strategy closely follows the U.S. Securities and Exchange Commission’s endorsement of Bitcoin ETFs.
Historically, U.S. investors gravitated towards European and Canadian ETPs for digital asset investments. However, the trend has reversed, with the U.S. green-lighting 11 spots of BTC ETFs. U.S.-based ETFs, offering greater liquidity and accessibility, are now more appealing to American and European investors.
Impactful Fee Adjustments
The Invesco Physical Bitcoin ETP has undergone a fee cut from 0.99% to 0.39%. WisdomTree’s Physical Bitcoin ETP has followed suit, reducing its fee from 0.95% to 0.35%. These changes represent a substantial decrease of over 60% in fees, a response to the competitive U.S. market where ETFs have also reduced fees to attract a larger investor base.
European ETPs, often structured as exchange-traded notes (ETNs), provide a different investment proposition than their U.S. ETF counterparts. Despite this, the attractive features of U.S. ETFs, including higher liquidity and single-exchange trading, have shifted investor preferences significantly.
These strategic fee reductions in Europe reflect a broader global crypto investment market recalibration, balancing supply and demand in an interconnected financial ecosystem.
The U.S. SEC’s decision is reshaping investment strategies across continents, emphasizing the dynamic and evolving nature of the digital asset market and heralding a new era in global investment trends.
Also Read: Invesco & Galaxy’s Joint Spot Bitcoin ETF Now Listed on DTCC
