Bitcoin
Global X Reduces Fees on European Crypto ETPs to Zero
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US-based exchange-traded fund provider Global X ETFs has temporarily cut fees on two physically-backed cryptocurrency exchange-traded products to zero.
The $57 billion (€52.4 billion) asset manager, which is owned by South Korea’s Mirae Asset, says it will not charge any fees for its Global X Bitcoin and Global X Ethereum ETPs until January 3, 2025, when the rate will change to 0.29 percent.
The two products were listed for the first time on Frankfurt’s Xetra and Zurich’s Six Swiss Exchange in March 2022, with a total expense ratio of 0.65 percent.
Rob Oliver, head of Global X ETFs in Europe, said the rate cut demonstrated Global X’s “ongoing commitment to the European market and its investors.”
Both Jersey-domiciled ETPs are still small.
According to the Global X website, the Bitcoin vehicle handled about $4.3 million in assets as of May 24, while the Ethereum product handled about $5.7 million.
News of the temporary zero fee for the two ETPs came as WisdomTree and 21Shares launched products on the London Stock Exchange that invest in physically-backed bitcoin and ethereum.
Admission to the exchange’s main market is subject to approval by the UK Financial Conduct Authority, although access to products is restricted to professional investors.
The FCA announced in March, which would allow the sale of cryptocurrency exchange-traded notes to professional investors but maintain the ban on retail investment.
The two WisdomTree ETPs launched with a management expense ratio of 0.35 percent, which the company claims represents “one of the lowest fee levels for institutional-grade bitcoin and ethereum ETPs that are 100 percent guaranteed by the underlying assets”.
*Ignites Europe is a news service published by FT Specialist for professionals working in the asset management industry. Trials and subscriptions are available at igniteseurope. with.