Reduced Cost for European Bitcoin ETFs by Fidelity

Another asset management has reduced the cost of their bitcoin ETP, and this time it's Fidelity. A decrease from 0.75% to 0.35% was seen in the total cost ratio (TER) of the Fidelity Physical Bitcoin ETP (FBTC).

With the introduction of eleven spot bitcoin ETFs in the United States, several cryptocurrency issuers, including as CoinShares, Invesco, and WisdomTree, lowered the base fees of their bitcoin exchange-traded products (ETPs).

Asset managers in Europe are vying for a piece of the institutional demand, and the launches have send prices soaring.

Last month, WisdomTree reduced the costs on its physical bitcoin ETPs to 0.35% and Invesco to 0.39%. Also, CoinShares lowered their charge to 0.35 percent.

"Investors in cryptocurrencies all over the world have been spurred to interest by the recent approval of the first spot bitcoin ETFs in the U.S.," stated Christian Staub, managing director Europe at Fidelity.

The clients have been asking for an effective approach to benefit from this trend, therefore we have had several talks with them over the past few months, according to Staub. "We have faith that the new pricing model for our ETP will help us meet their increased demand and open up this asset class to even more investors.

With the fee cut, BITC is now more competitive with the 21Shares Bitcoin Core ETP (CBTC), the lowest physical bitcoin ETP in Europe, which has a TER of 0.21%.

Valour Bitcoin Zero SEK (BTC0E) is the synthetically duplicated bitcoin ETP with the lowest management cost in Europe. FBTC has $25 million in AUM and was listed in February 2022.

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