Global X, a US-based ETF provider, has announced that it will be temporarily waiving fees for its two physically backed cryptocurrency exchange-traded products (ETPs) in Europe. The Global X Bitcoin and Global X Ethereum ETPs will have no fees until January 3, 2025, after which a fee of 0.29% will be applied. This move is seen as a strategic effort to attract European investors.
These two investment products were initially launched in March 2022 on stock exchanges in Frankfurt and Zurich with a fee of 0.65%. While the Global X Bitcoin and Ethereum ETPs are still relatively small, with around $4.3 million and $5.7 million in assets respectively, the fee reduction is expected to generate more interest.
Global X’s decision to lower fees on its crypto ETPs follows the launch of similar products on the London Stock Exchange by WisdomTree and 21Shares. In March, the UK’s financial regulator allowed for the trading of crypto asset exchange-traded notes on certain exchanges, but these products are currently limited to professional investors only. This has sparked some debate, with a UK lawmaker calling for the Financial Conduct Authority (FCA) to reconsider its ban on crypto exchange-traded products for retail investors.
WisdomTree’s two ETPs, which also offer exposure to Bitcoin and Ethereum, have a low fee of 0.35%, positioning them as one of the most competitive options for institutional-grade, physically-backed crypto ETPs.
Overall, the fee reduction by Global X aims to attract more European investors to its Bitcoin and Ethereum ETPs, following in the footsteps of other providers entering the market.