NEW YORK, March 24, 2021 /PRNewswire/ -- NYDIG, a leading provider of technology and investment solutions for Bitcoin, today announced that, effective immediately, the total expense ratio for NYDIG funds that provide passive access to Bitcoin will be reduced to 0.30% of net asset value per year. The new pricing applies to all existing and forthcoming private and public funds managed by NYDIG, and represents NYDIG's third fee reduction in the last year.
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. 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.
The firm also announced today that all fund platform partners, including Morgan Stanley's wealth management platform, can benefit from this lower cost. This includes financial advisors, registered investment advisors (RIAs), and broker-dealer platforms. The news follows NYDIG's launch, in partnership with FS Investments, on Morgan Stanley's wealth management platform last week.
"We are grateful for our growth, and our proprietary vertically-integrated platform delivers unmatched economies of scale that we can pass on to our clients. As an asset manager ourselves, we take our responsibility to the investors and advisors we work with very seriously, and always seek to help our partners meet their own fiduciary or Reg BI obligations," said Robert Gutmann, Co-founder and CEO of NYDIG. "With the best people, the best products, and the best price, NYDIG continues to cement its position as the premier provider of Bitcoin solutions."
Ross Stevens, Founder and Executive Chairman of NYDIG, continued, "Industry-leading ease of bitcoin access is consistent with our mission of Financial Security for All. Expenses matter, and this will not be our last fee reduction. Further, as bitcoin's sound money advantages are more widely understood, I believe it is only a matter of time until U.S. dollar depreciation causes bitcoin's market cap to surpass that of gold, so it is fittingly symbolic that NYDIG has now made the total cost of bitcoin access 25% lower than the total cost of gold access (2). Our announcement today is good for our investors, good for our partners, good for NYDIG, and good for bitcoin."
(1) NYDIG's funds have the lowest total expenses among fund managers that we are aware of with funds that invest solely in bitcoin.
(2) The leading investment vehicle for gold is GLD, the SPDR Gold Trust, which has a total expense ratio of 0.40%.