Competition among institutional Bitcoin services continues to heat up as fees are slashed in time for a fresh herd of investors entering.
Bitcoin (BTC) institutional investment firm NYDIG has staged an abrupt price cut for investors using it to gain exposure to BTC price action.
In a press release on March 24, the company confirmed that effective immediately, its access fee had been reduced to 0.3%.
Bitcoin buyers pick their premium
The move comes just days after NYDIG's FS Select NYDIG Bitcoin Fund became one of three products selected by Morgan Stanley to be offered to its wealthy institutional clients.
A potentially timely maneuver, the fee reduction may have consequences for competitors, notably the Grayscale Bitcoin Trust (GBTC), management fees for which currently cost clients 2%.
"NYDIG's new pricing structure is 50-75% lower than comparable passive bitcoin access products available to investors and, critically, 0.30% represents the true total expense ratio of the fund, including a Big-4 audit and legal, custody, and accounting fees," the press release claims
As Cointelegraph reported, competition from newcomers forms one explanation as to why GBTC's premium — how much extra clients pay for Bitcoin exposure on top of the net asset value price — has fallen into record negative territory this year.
At one point, the premium offered a 15% discount to spot price for shares in GBTC.