Fidelity Cuts Fee on European Bitcoin ETFs

Fidelity Cuts Fee on European Bitcoin ETFs

The competition for spot bitcoin funds in Europe has been heating up.

Reviewed by: Staff
Edited by: James Rubin

Fidelity is the latest asset manager to cut the fee on its bitcoin exchange-traded product (ETP).

The Fidelity Physical Bitcoin ETP (FBTC) has seen its total expense ratio (TER) reduced from 0.75% to 0.35%.

It comes as several crypto issuers including Invesco, WisdomTree and CoinShares all reduced the headline fee of their bitcoin ETPs after the launch of the 11 spot bitcoin ETFs in the US.

The launches have sparked fierce competition on prices in Europe as asset managers hope to capitalize on institutional demand.

WisdomTree and Invesco slashed fees on their physical bitcoin ETPs last month, cutting them to 0.35% and 0.39%, respectively. CoinShares also reduced its fee to 0.35%.

Rising Interest in Cryptocurrencies

Christian Staub, managing director Europe at Fidelity, said: “The recent approval of the first spot bitcoin ETFs in the U.S. has spurred interest from investors in cryptocurrencies all over the world."

“We have had numerous conversations with clients over the past months as they are rightly asking for an efficient way to benefit from this trend," Staub said. "We are confident that our ETP's new pricing model will improve how we meet their renewed demand and give even more investors access to this asset class.”

The fee reduction places BITC closer to Europe’s cheapest physical bitcoin ETP—the 21Shares Bitcoin Core ETP (CBTC)—which has a TER of 0.21%.

Europe’s cheapest bitcoin ETP is the Valour Bitcoin Zero SEK (BTC0E) with a management fee of 0%, though this is synthetically replicated.

FBTC listed in February 2022 and has $25m assets under management (AUM).

Theo Andrew joined ETF Stream as a senior reporter in September 2021. He has over four years of investment writing experience spanning pensions and retail investments, most recently at Citywire, where he was a senior reporter covering environmental, social and governance investing.