Why BitSave's products have different expense ratios (and which one fits you)

In this article we cover:

• The three BitSave products, and the fee on each
• Why the Bitcoin product costs less than the index products
• What the 1.5% pays for that the 0.95% does not
• How to pick: single asset, diversified Bloomberg index, or crypto and gold
• Whether the Bitcoin product with lower expense ratio, any less safe
• Whether you can switch between products later

BitSave's three products, and what each costs

BitSave runs three products, and they carry two price points. A Bitcoin product which has an 0.95% annual expense ratio charged on daily NAV and a Bloomberg Crypto Index Product charged at 1.5%, and a Crypto-and-Gold product at 1.5%. Each fee is an annual expense ratio, charged pro rata on the daily NAV, the way an index fund charges.

For an Indian investor, the crypto index expense ratio is only part of the cost. The bigger difference between doing this yourself and holding a BitSave product is tax, that gets attracted at every rebalance and we detail it below.

But first, why are the expense ratios different? The fee is an indication of what the product is inside and how the product is managed within the platform.

Why does the Bitcoin product cost less than the index products?

The Bitcoin product holds a single asset, which means: 

• There is no index licence for BitSave to pay for and 
• Nothing to rebalance each month. 

Less cost of doing business hence a lower expense ratio. At about 0.95%, it sits in the range of international Bitcoin-only products, which typically charge under 1%.

The 1.5% is not a markup on the same thing. It covers for all the additional value that the indexed and hybrid products have: 

• A licensed index method, or 
• A managed mix of assets. 

If you want to hold Bitcoin and only Bitcoin, you are not paying for a rebalance hence the expense ratio remains 0.95%.

Unlike trading on an exchange, where a spread or a per-trade fee is taken each time you buy or sell, the expense ratio is one number you can see in advance. There is no hidden trading cost stacked on top of it.

What does the 1.5% pay for?

The two index products attract expense ratio of 1.5% because:

• The crypto index product pays for the Bloomberg BGCI licence and 
• A monthly, rules-based rebalance. 

The crypto-and-gold product carries no licence, but BitSave's asset manager runs a multi-asset mix and rebalances it monthly. Same fee, different work.

The licence matters because the index is not BitSave's own list. Bloomberg publishes and maintains the methodology, and BitSave pays to track it. The rebalance keeps the basket aligned to that method as the market moves, without you doing anything.

Institutional-grade custody and insurance remain the same across the products. 

Which product fits you?

Choose the product that best fits your investment needs and crypto market understanding.

If you have conviction in Bitcoin and want a single asset, the Bitcoin product at about 0.95% is the plain fit. If you want diversified, rules-based exposure to leading crypto, the BGCI index product spreads across the method rather than one coin. If you want lower volatility with a steadier anchor, the crypto-and-gold product pairs Bitcoin and Ethereum with gold.

None of these is the "best" product and you shouldn’t choose one over the other with the expense ratio as the main criteria. The best one is the one holding what you actually want to own and what fits your 5 year or long term investing needs.

Is the Bitcoin product any less safe than the index products?

No. All the products are equally secured and the storage and insurance on the assets are all identical. The protection does not change with the fee. All three hold the underlying asset in institutional cold storage with Lloyd's of London insurance cover placed directly on those assets. The asset itself sits off BitSave's balance sheet, and you can verify your reserves on-chain. None of them lend or stake your asset to earn a yield. In the other products, you are not paying the higher fee for safety, you are paying it for the index licence, hybrid product management and the monthly rebalancing on these two products. BitSave also issues unit tokens precisely to keep your assets safe, across all three products.

Tax treatment is the same too. And this is the point where you really get to see the advantage of paying just an expense ratio and avoiding all the hassle and expenses that come from managing an index or investing through exchanges. 

Crypto in India sits under Schedule VDA: 30% on gains, 1% TDS on sale, and no offset for losses. If you hold and rebalance a basket yourself, each rebalance can be a taxable event. Inside a BitSave product, the rebalancing happens within the product, so that you are taxed once, on exit, rather than every month. Compared with buying Bitcoin and Ethereum yourself, you hold no keys, run no rebalances, and do not trigger a tax event each time the mix changes. Over the long term, that all-in difference usually outweighs the fee gap. That holds across the Crypto and Gold product and the BGCI Crypto Index product.

Can you switch between products later?

No. You cannot move directly from one product to another. If you want to invest in any of the other products, you exit one and enter the other, and the exit is a taxable event on your gains. So choose with that in mind, because switching later is not a free move.

To sum it all up:

• Three products, two price points: about 0.95% for Bitcoin only, 1.5% for the two index products.
• The gap in price is not a discount: a Bloomberg licence and the hybrid products need monthly rebalance, or a managed multi-asset mix.
• At about 0.95%, the Bitcoin product sits in the range of international Bitcoin-only products; 1.5% applies only where there is a licence or a managed mix.
• Custody, Lloyd's insurance cover, the off-balance-sheet structure, on-chain proof, and single-exit tax treatment are the same across all three.
• You cannot switch between products without exiting first, which is a taxable event. Pick by what you want held.

FAQs

Q: Why does BitSave have two different fees? 
A: Because the products are different. The Bitcoin product holds one asset, with no index licence and no rebalancing, so it costs about 0.95% as expense ratio, charged annually on daily NAV. The two index products carry either a Bloomberg licence or a managed multi-asset mix, plus a monthly rebalance, so they cost 1.5% as expense ratio. 

Q: Is the 0.95% Bitcoin product a worse deal than the index? 
A: No. A lower fee is not a worse product, it reflects a simpler product design. The Bitcoin product holds a single asset with no licence or rebalance to fund. If you want to own only Bitcoin, paying for a rebalance you never use would be the worse deal. 

Q: What is the exit load, and when does it apply? 
A: A 1% exit load applies if you sell within 30 days of investing, on all three products. After 30 days there is no exit load. It is a short-term charge, not an ongoing one.

Q: Does the fee include GST or any per-trade charge? 
A: The charge to hold each product is its annual expense ratio, taken from the daily NAV, plus the 1% exit load if you sell within 30 days. GST on the fee and any transaction-level charge are being confirmed and will be stated plainly here before this piece goes live.

Q: Is 1.5% high for a crypto index? 
A:. The 1.5% covers a Bloomberg-licensed index method or a managed mix, a monthly rebalance, institutional cold storage, Lloyd's insurance cover on the assets, and tax deferred to a single exit. It also covers your annual tax statement delivered within the app. The statutory TDS is deducted and your annual tax statement which is ready for ITR filing, is available at the click of a button. Hence, the 1.5% covers a stack of services.

Q: How is the expense ratio charged? 
A: It is quoted as an annual figure and taken pro rata from the daily NAV, the way an index fund charges. You do not pay it as a single yearly deduction. It accrues a little each day against the value of your holding.

Q: Can I hold more than one product at once? 
A: You can invest in more than one BitSave product at the same time, and each is held and tracked separately. Moving money from one to another is not a switch though, it means exiting one and entering the other.