Institutional investors across the world are getting restless as Bitcoin sees massive adoption. And expenses matter to accommodate the growing demand. In line with this, Bitcoin institutional investment company, NYDIG announced on the 24th of March that the total expense ratio for NYDIG funds that provide passive access to Bitcoin will be cut down to 0.30% of net asset value per year effective immediately.
How Will NYDIG’s Move To Cut Bitcoin Fee Help?
The latest news essentially represents NYDIG’s third fee reduction in the last year. It is important to note that the crypto tech firm’s new pricing structure is 50-75% lower than similar passive Bitcoin access products available to investors in the market.
Besides, NYDIG stated that 0.30% represents the “true total expense ratio of the fund”. This includes a Big-4 audit and legal, custody, as well as accounting fees. It added,
“While some funds may pass through these costs and obscure the true cost of ownership behind lower “headline” management fees, NYDIG continues to lead the market in delivering the most transparent, most simple, and most secure access to bitcoin, at the lowest total cost.”
Along with this news, the company also disclosed that all fund platform partners, including Morgan Stanley’s wealth management platform, can benefit from this lower cost. This includes entities such as financial advisors, registered investment advisors [RIAs], and broker-dealer platforms.
Interest in the crypto-asset has expanded considerably from mainstream finance over the past year or so. Different industry players such as MicroStrategy, Tesla, and Square have bought large stacks of Bitcoin the recent months and the outlook has never been this bullish before.
And to cater to the rising demand, NYDIG has continued to reduce its fees while scaling the access up. Along the same line, the author of ‘The Bitcoin Standard’ Saifedean Ammous tweeted,
“Lowest bitcoin fees in the financial industry are now even lower than gold fees. The days of bitcoin products having a significant positive premium over bitcoin may be over for good.”
The latest news comes a little over a week after the investment firm’s Bitcoin Fund was picked as one of three products by the institutional banking powerhouse, Morgan Stanley to be offered to its wealthy institutional clients.