VanEck Drops Bitcoin ETF Fees to Zero Until 2025
VanEck has announced that it will temporarily waive the fee for its spot Bitcoin ETF, HODL, until March 31, 2025. The decision, announced via X, comes as VanEck’s fund trails behind its competitors in terms of assets under management (AUM).
Key points:
- VanEck temporarily drops the fee to zero for its spot Bitcoin ETF, HODL.
- The fee waiver is effective until March 31, 2025, or until the fund reaches $1.5 billion in assets.
- HODL currently manages just over $305 million in AUM, lagging behind competitors.
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VanEck has expressed its belief in Bitcoin, stating that the fee drop is a testament to its confidence in the cryptocurrency. However, industry experts suggest that the move may also be a strategic response to the fund’s relatively modest AUM compared to its rivals.
Currently, HODL manages just over $305 million, while most other funds have surpassed the $1 billion mark.
VanEck to drop fees until 2025
Prior to this announcement, HODL charged investors a fee of 0.2%, which was already among the lowest in the market. Competitors such as BlackRock, Fidelity, Invesco, WisdomTree, and Valkyrie charge 0.25%, while Franklin Templeton offers a slightly lower fee of 0.19%.
The fee waiver will remain in effect until March 31, 2025, or until the fund reaches $1.5 billion in assets, whichever comes first. If HODL surpasses the $1.5 billion threshold before the set date, VanEck will charge a fee of 0.20% on assets exceeding that amount.
Read more: MicroStrategy Buys 12,000 Bitcoin For $821 Million As BTC Hits $72,000
All investors will incur the same weighted average sponsor fee, which will be determined based on the fund’s total assets. VanEck’s bold move to eliminate fees aims to attract investors as BTC surpassed the $72,000 level for the first time ever.
