Crypto ETP: This Firm Slashes Bitcoin & Ether ETP Fees To Zero
Crypto ETP: Global X is temporarily cutting its fees for the Bitcoin and Ethereum ETPs to zero, aiming to boost investor interest amid rising global appetite.
A leading asset management firm has announced a bold move to cut down fees for its Bitcoin and Ethereum crypto exchange-traded products (ETPs) to zero. Meanwhile, this update has sparked significant market interest, especially given the growing global appetite for these investment instruments in recent days.
According to a recent report, this fee reduction is set to last until January 3, 2025, after which a modest fee of 0.29% will be implemented.
Global X Cuts Crypto ETP Fees To Zero
Global X ETFs, a U.S.-based exchange-traded fund provider owned by South Korea’s Mirae Asset, is temporarily eliminating fees for its physically-backed 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%.
Meanwhile, according to Rob Oliver, head of Global X ETFs in Europe, the decision to cut fees aims to demonstrate Global X’s “commitment” in the EU region and for the traders.
Currently, these Jersey-backed ETPs are relatively small in size. As of May 24, the Bitcoin ETP managed about $4.3 million in assets, while the Ethereum product managed approximately $5.7 million.
Meanwhile, despite their size, the fee cut has generated substantial interest and could attract more investors to these products.
Soaring Global Interest
The fee reduction by Global X comes at a time when other firms are also making moves in the crypto ETP space. WisdomTree and 21Shares have recently launched products on the London Stock Exchange that invest in physically-backed Bitcoin and Ethereum.
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 London Stock Exchange’s main market is subject to approval by the UK’s Financial Conduct Authority (FCA).
For context, the FCA has allowed the sale of crypto exchange-traded notes to professional investors, while maintaining its ban on retail investment. This regulatory environment underscores the cautious yet progressive approach towards crypto investments in the UK.
Meanwhile, the news of crypto ETP issuer Global X’s fee cut coincides with a period of significant activity in the U.S. Spot Bitcoin ETF market. Recently, these U.S. Spot Bitcoin ETFs have seen substantial inflows, with $105.1 million added on Monday, June 3. Notably, this influx reflects growing investor confidence and interest in Bitcoin as a viable investment option.
❤️ Like | 💬 Comment | ↪️ Share 🚀
🔥 Please follow @Coinaute on #Binance Square! 🚀🔥
- Website: coinaute.com
- Twitter: Coinaute EN
- Binance Square #coinaute
$BTC $ETH #btc70k #ETHETFsApproved #Bitcoin