Global X slashes fees on European crypto ETPs to zero

US-based exchange traded fund provider Global X ETFs has temporarily cut fees for two physically backed cryptocurrency exchange-traded products to zero.

The $57bn (€52.4bn) 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 fee will change to 0.29 per cent.

The two products were first listed on Frankfurt’s Xetra and Zurich’s Six Swiss Exchange in March 2022 with a total expense ratio of 0.65 per cent.

Rob Oliver, head of Global X ETFs in Europe, said the fee cut demonstrated Global X’s “continuous commitment to the European market and its investors”.

Both Jersey-domiciled ETPs are still small in size.

According to Global X’s website, the bitcoin vehicle managed about $4.3mn in assets as of May 24, while the ethereum product looked after some $5.7mn.

News of the temporary zero fees 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’s Financial Conduct Authority, although access to the products will be restricted to professional investors.

The FCA announced in March that it would allow the sale of crypto exchange traded notes to professional investors, but that it would keep its ban on retail investment.

The two WisdomTree ETPs have been launched with a management expense ratio of 0.35 per cent, which the firm says represents “one of the lowest fee levels for institutional-grade bitcoin and ethereum ETPs that are 100 per cent backed 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.com.