Global X drops crypto ETF fees and eyes US$150,000 Bitcoin price
Global X ETFs have slashed the ETF fees of their Bitcoin and Ethereum ETFs to 0.45% p.a.
The Global X Bitcoin ETF (Cboe: EBTC) and Global X Ethereum ETF (Cboe: EETH) were the first ETFs in the Asia-Pacific to offer exposure to spot cryptocurrencies.
Global X ETFs Senior Investment Strategist, Billy Leung says the fee reduction brings EBTC and EETH in line with other Australian-listed cryptocurrency ETFs – increasing investors’ ability to choose the right fund for them regardless of price.
“While Global X was the first to launch crypto ETFs in Australia, we must keep innovating to ensure we are best serving our clients and all investors who are interested in investing in Bitcoin,” Leung said.
“More Australians are interested in adding cryptocurrencies to their portfolio as the asset class becomes better understood – evidence by inflows into Australian-listed cryptocurrency funds steadily increasing since we launched our funds in 2022. In fact, EBTC and EETH have jointly racked up $151 million of inflows.”
According to Leung, Australian-listed Bitcoin ETFs have attracted $64 million this year to date – cooling since the Bitcoin price cooled from more than US$100,000 to around US$80,000.
“Bitcoin’s price is a major factor in investor demand, so we would expect inflows to increase as the price recovers. November 2024 was the best month for Australian Bitcoin ETF inflows, adding $87 million. This coincided with a major price rally as Donald Trump was elected President which was seen as a boost to the crypto ecosystem in terms of government adoption and support,” Leung said.
“Assuming ongoing support from major financial institutions and another catalyst we believe Bitcoin could reasonably hit US$120,000, in a bull market this could be closer to US$150,000 – almost double its current price.”
EBTC and EETH track the performance of Bitcoin and Ethereum, respectively, in Australian dollars and grant investors access to segregated Bitcoin and Ethereum held in secure ‘cold storage’ with Coinbase, the world’s largest cryptocurrency custodian. This makes exposure to price movements available to investors via a regulated product on a major stock exchange, streamlining access and removing the complexities of direct crypto ownership.
