US-based ETF provider Global X has announced that it will be temporarily eliminating fees for two of its physically backed cryptocurrency exchange-traded products in Europe. The Global X Bitcoin and Global X Ethereum ETPs will have their fees waived until Jan. 3, 2025, after which a fee of 0.29% will apply. These products began trading in March 2022 on stock exchanges in Frankfurt and Zurich for a fee of 0.65%, but this fee waiver is likely a strategic move to attract European investors. As of May 24, the Bitcoin fund has around $4.3 million in assets under management, while the Ethereum fund has around $5.7 million.
Global X’s fee cut on its crypto ETPs comes after the launch of similar Bitcoin and Ethereum products on the London Stock Exchange from WisdomTree and 21Shares. In March, the UK’s financial regulator allowed for crypto asset exchange-traded notes on certain exchanges, but these products are currently limited to professional investors only. This decision has sparked debate, with a UK lawmaker recently calling on the FCA to reconsider its ban on crypto exchange-traded products for retail investors. WisdomTree’s two ETPs offer a low fee of 0.35%, positioning them as some of the most competitively priced institutional-grade, physically-backed crypto ETPs on the market.
The competition in the European cryptocurrency ETP market has been heating up with the entrance of these new products from Global X, WisdomTree, and 21Shares. Global X’s fee elimination strategy is aimed at attracting investors to its Bitcoin and Ethereum ETPs, which are still relatively small in terms of assets under management. By offering lower fees, Global X hopes to appeal to European investors looking to gain exposure to cryptocurrencies through exchange-traded products. The move also comes as the UK’s financial regulator begins to allow certain crypto asset ETPs to be traded on exchanges.
Investors in Europe now have a wider range of options when it comes to gaining exposure to cryptocurrencies through ETPs, with products from Global X, WisdomTree, and 21Shares all vying for market share. The fee cuts on Global X’s crypto ETPs indicate the firm’s commitment to attracting investors and growing its presence in the European market. With competition intensifying, providers are offering lower fees and more competitive rates to entice investors. The success of these products will depend on their ability to attract and retain investors in a rapidly evolving market for cryptocurrency exchange-traded products.
The temporary fee waiver on Global X’s Bitcoin and Ethereum ETPs is a significant move in the competitive European cryptocurrency market, as providers seek to differentiate themselves and attract investor interest. With the recent entrance of new products from Global X, WisdomTree, and 21Shares, investors now have more options for gaining exposure to cryptocurrencies through ETPs. The fee cuts on Global X’s products are part of a broader trend in the market towards lower fees and more competitive pricing, as providers compete for market share and investor attention. Overall, the European cryptocurrency ETP market is expected to continue to evolve and grow as more options become available to investors.
