European Bitcoin ETFs have a net outflow of $500 million this year, outpacing low-rate competition in the United States

Bitcoin exchange-traded products (ETPs) in Europe have suffered a net outflow of $500 million this year, despite rising demand for Bitcoin. Bitcoin funds in Europe have seen net outflows of more than $500 million since January, while ETPs from other cryptocurrencies such as Ethereum have sucked up $42 million in the region. Pierre Debru, head of quantitative research at WisdomTree, said the increased interest from European ETPs customers following the launch of US Bitcoin ETFs has also brought unprecedented competition, forcing European issuers to lower fees. For example, BlackRock and Fidelity now offer a 0.25% annual management fee, while European Bitcoin ETP providers such as Invesco, WisdomTree and CoinShares have reduced fees to less than 0.4%. Funds that failed to reduce fees underperformed, such as Grayscale Bitcoin Trust (GBTC) and Canada's Purpose Bitcoin ETF, which both lost significant assets due to high management fees. VanEck Europe CEO Martijn Rozemuller said the firm's regional crypto ETF received small inflows despite increased competition.