Crypto News – Only a few weeks after the SEC authorized Bitcoin ETFs in the nation, the spot fee war has now spread to Europe.
European Price War: Invesco and WisdomTree Cut the Price of European ETPs
Several applicants amended their S-1 files several times to reduce their ETF fees prior to the approval on January 10. Currently, European-listed exchange-traded products (ETPs) are showing a similar trend.
Fees on two of the top asset managers’ European-listed ETPs, WisdomTree and Invesco, were cut by more than 60%. There will be a charge reduction of 0.99% to 0.39% for the $137 million Invesco Physical Bitcoin ETP and 0.95% to 0.35% for the $325 million WisdomTree Physical Bitcoin ETP.
American Investors’ Interest in European ETPs Wanes
In the United States, one of the top financial markets, there is more competition and a greater selection of ETFs, which is why costs have decreased significantly. Previously, investors residing in the United States had to turn to ETPs with headquarters in Canada and Europe. However, American investors’ desire for European ETPs has sharply declined after the U.S. approved 11 spot BTC ETFs.
Several ETFs in the United States cut their fees to find the “new equilibrium between supply and demand,” which led to significantly lower pricing than current ETPs in Europe, according to Gary Buxton, Invesco’s head of ETFs in Europe, in an interview with the Financial Times.