Bitcoin
This company reduces Bitcoin and Ether ETP fees to zero
A leading asset management firm has announced a bold move to reduce fees on its Bitcoin and Ethereum crypto exchange-traded products (ETPs) to zero. However, this update aroused significant market interest, especially given the growing global appetite for these investment instruments in recent days.
According to a recent report, this rate reduction is expected to last until January 3, 2025, after which a modest rate of 0.29% will be implemented.
Global X Reduces Crypto ETP Fees to Zero
Global X ETFs, a US-based exchange-traded fund provider owned by South Korea’s Mirae Asset, is temporarily eliminating fees for its physically collateralized assets Bitcoin
and Ethereum ETPs. Notably, these products were initially listed on Frankfurt’s Xetra and Zurich’s Six Swiss Exchange in March 2022, with a total expense ratio of 0.65%.
However, according to Rob Oliver, head of Global X ETFs in Europe, the decision to cut fees is intended to demonstrate Global X’s “commitment” to the EU region and to traders.
Currently, these Jersey-backed ETPs are relatively small in size. From May 24th, the BitcoinETP managed approximately $4.3 million in assets, while the Ethereum product managed approximately $5.7 million.
However, despite its size, the reduction in fees has generated substantial interest and could attract more investors to these products.
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Growing global interest
The fee reduction by Global X comes at a time when other companies are also making moves in the crypto ETP space. Tree of Wisdom and 21Shares recently launched products on the London Stock Exchange that invest in Bitcoin and Ethereum with physical backing.
However, these ETPs come with a management expense ratio of 0.35%, which the firms claim is one of the lowest for institutional-grade Bitcoin and Ethereum ETPs. However, admission to the main market of the London Stock Exchange is subject to the approval of the UK Financial Conduct Authority (FCA)
.
For context, the FCA allowed the sale of exchange-traded cryptographic notes to professional investors, while maintaining a ban on retail investment. This regulatory environment highlights the cautious yet progressive approach towards crypto investments in the UK.
Meanwhile, news of crypto issuer ETP Global X’s rate cut coincides with a period of significant activity in the US Spot Bitcoin ETF Marketplace. These US Spot Bitcoin ETFs have seen substantial inflows recently, with $105.1 million added on Monday, June 3. Notably, this influx reflects investors’ growing confidence and interest in Bitcoin as a viable investment option.
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