VanEck Cuts Bitcoin ETF Fee to Zero in a Bid to Attract Inflows
"VanEck will temporarily cut the management fee to zero for its spot bitcoin exchange-traded fund (ETF), HODL, as its assets are well below some of its competitors," reported CoinDesk.
- "Because we believe in bitcoin so much, you can invest in VanEck Bitcoin Trust (HODL) with no fees until March 31st, 2025," announced the company.
"During the period commencing on March 12, 2024, and ending on March 31, 2025, the Sponsor will waive the entire Sponsor Fee for the first $1.5 billion of the Trust’s assets."
- "If the Trust’s assets exceed $1.5 billion prior to March 31, 2025, the Sponsor Fee charged on assets over $1.5 billion will be 0.20%. All investors will incur the same Sponsor Fee, which is the weighted average of those fee rates. After March 31, 2025, the Sponsor Fee will be 0.20%."
- Following the announcement, VanEck's ETF saw record inflows, per Bloomberg's Eric Balchunas. The flows are still below
$HODL volume massive today too, about 10x its 30day avg, likely foreshadow to more inflows. VanEck chose rich. https://t.co/E57DarXYiw
— Eric Balchunas (@EricBalchunas) March 12, 2024
- VanEck is one of the two asset managers that diverts a fraction of their bitcoin spot ETF profits to open-source Bitcoin developers. The announcement also means that there will be no profits for the period and amounts specified above.
