VanEck, the $76 billion investment management firm, announced Tuesday that it will waive the management fee for its spot bitcoin ETF, the VanEck Bitcoin Trust (HODL).
The New York-based investment firm said in a press release that it will drop the fee until March 31, 2025, unless the exchange-traded fund reaches $1.5 billion in assets before that date. If assets surpass $1.5 billion before then, VanEck will charge a 0.2% fee, which is what it has been charging until the change. The fee will return to that percentage after March 31, 2025, the firm said.
"We listen to our clients and understand the importance of continually reassessing our fee structures to align with their expectations and the dynamic nature of the market," said Kyle DaCruz, director, of digital assets products with VanEck. He added that the firm believed the change would stimulate interest among investors in “the potential of bitcoin as part of their investment strategy.”
HODL’s assets under management of $320 million have fallen far short of the fastest-growing spot bitcoin funds, most notably as BlackRock’s iShares Bitcoin Trust (IBIT) and the Fidelity Wise Origin Bitcoin Trust (FBTC) hold approximately $14 billion and $9 billion in AUM respectively.
VanEck’s HODL Follows Spot Bitcoin Fee Waiver Trend
HODL and nine other spot bitcoin ETFs began trading on Jan. 11, a day after the U.S. Securities and Exchange Commission approved them. But even before then, the issuers had been jockeying for an edge by cutting fees. Ark Invest, WisdomTree, and Valkyrie, among others, have temporarily eliminated or significantly reduced their fees to boost the initial AUM of their respective ETFs.
While bitcoin ETFs have grown at a record pace, with BlackRock’s IBIT reaching $10 billion in assets faster than any other ETF in history, they still trail broad market funds like S&P 500 ETFs and traditional assets like gold funds in assets under management.
However, with bitcoin trading at record highs and growing mainstream interest, spot ETFs have shown enormous potential. Bitcoin was currently trading at about $71,500, down slightly over the past 24 hours, but it is up about 54% since the spot bitcoin ETFs won approval.