LONDON - In a strategic move amidst growing market anticipation, European financial firms WisdomTree and Invesco have announced significant reductions in fees for their cryptocurrency exchange-traded products (ETPs). This decision comes as the industry prepares for the Bitcoin halving event in April, which traditionally stirs market optimism.
WisdomTree has made a notable cut in the cost for its Physical Bitcoin ETP, now charging investors a fee of 0.35%. Similarly, Invesco has reduced the fee for its Physical Bitcoin ETP to 0.39%. These changes are set to be implemented by the end of January.
The fee reductions follow the U.S. approval of spot Bitcoin exchange-traded funds (ETFs), marking a significant regulatory milestone that has been positively received by the cryptocurrency sector. The move by WisdomTree and Invesco is seen as a competitive response to the evolving landscape, as lower fees can attract more investors seeking exposure to Bitcoin through regulated financial instruments.
As the Bitcoin halving event approaches, it is widely anticipated to have a bullish effect on the market. The halving, which occurs approximately every four years, reduces the reward for mining new bitcoins by half, effectively limiting the new supply of the cryptocurrency and potentially driving up its price if demand remains constant or increases.
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