Fidelity, a leading asset manager, has Announced a fee reduction for its Bitcoin exchange-traded product (ETP) in Europe, joining a trend among cryptocurrency issuers to reduce fees amid increasing competition in the market. The Fidelity Physical Bitcoin ETP (FBTC) will now see its total expense ratio (TER) reduced from 0.75% to 0.35%, making it more competitive in the market.
Fidelity, a leading asset manager, has Announced a fee reduction for its Bitcoin exchange-traded product (ETP) in Europe, joining a trend among cryptocurrency issuers to reduce fees amid increasing competition in the market. The Fidelity Physical Bitcoin ETP (FBTC) will now see its total expense ratio (TER) reduced from 0.75% to 0.35%, making it more competitive in the market.
Market dynamics
Bloomberg Senior ETF Analyst Eric Balchunas shared the news on X, highlighting the importance of the fee reduction in Europe from 75 basis points (bps) to 35 bps.
Fidelity’s price reduction move follows similar fee reductions by other cryptocurrency issuers in Europe, including Invesco, WisdomTree and CoinShares. These reductions came in the wake of the launch of 11 spot Bitcoin ETFs in the United States, triggering a price war among asset managers in Europe seeking to capitalize on growing institutional demand for crypto products.
Speaking about the impact of the recent approval of Bitcoin spot ETFs in the US on global investor interest in cryptocurrencies, Fidelity Managing Director for Europe Christian Staub said: “We have had numerous conversations with clients over the past few months as they are rightly asking for an efficient way to benefit from this trend.
Implications of fee reductions for the crypto market
Fidelity’s fee reduction aims to address this renewed demand and give more investors access to the Bitcoin asset class through its ETP. As competition intensifies and investors seek profitable investment options, ETF providers are under pressure to reduce fees to remain competitive.
With this fee reduction, FBTC is now closer to being one of the cheapest physical Bitcoin ETPs in Europe, aligning its fee structure with competitors such as WisdomTree and CoinShares, which have also reduced their fees to 0.35%. It also reflects Fidelity’s dedication to serving the changing needs of investors and maximizing value for its clients.
