What Sets Invesco’s Spot Bitcoin ETF Apart From Peers

Invesco was among the 11 asset managers to launch a spot bitcoin ETF this week.

The Invesco Galaxy Bitcoin ETF (BTCO) began trading on January 11, alongside a slew of other spot bitcoin ETFs that had been long awaiting SEC approval. For the first time, investors can gain exposure to physical bitcoin through an ETF.

Notably, Invesco is waiving BTCO’s entire fee on assets up to $5 billion for the first six months after launch. This effectively brings the total expense ratio of BTCO to 0 basis points from 39 basis points. Furthermore, Invesco has the discretion to extend the fee waiver further, according to a statement from the firm.

Invesco’s Spot Bitcoin ETF Benefits From Galaxy’s Expertise in Digital Assets

Invesco launched BTCO in partnership with Galaxy Asset Management, one of the world’s largest digital assets and blockchain investment managers.

“There is pent up demand for spot bitcoin ETFs among advisors according to VettaFi data,” Todd Rosenbluth, head of research at VettaFi, said. “Invesco’s strong brand name and broad lineup, as well as its partnership with Galaxy, should help it garner attention in a crowded market.”

A key differentiator between BTCO and its spot bitcoin ETF peers is its experienced management team. Galaxy acts as the execution agent in the buying and selling of bitcoin for cash on behalf of BTCO. This effectively brings expertise and institutional-grade infrastructure to the process. This may benefit execution of the creation and redemption of BTCO shares, according to a statement from Invesco.

Galaxy’s deep knowledge of digital assets and experience in investing across all stages of the ecosystem strengthen the operational risk management of the fund, according to the statement.

There are numerous benefits to investing in bitcoin via the familiar ETF wrapper. Trading on the Cboe, BTCO offers flexible entry to and exit from the asset class. Furthermore, BTCO can be held in investment accounts like brokerages and easily added to an investment portfolio.

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