VanEck has announced a temporary reduction of its
management fee to zero. Despite its fervent belief in Bitcoin, the asset
manager behind the spot bitcoin exchange-traded fund (ETF) named HODL has
struggled to amass investments into its fund.
According to a report by Coindesk, the firm’s assets
managed under HODL stand a little over $305 million, significantly below its
competitors. Thus, VanEck has declared a fee waiver for its Bitcoin ETF, HODL,
effective until March 31, 2025, or until the fund reaches $1.5 billion in
assets, whichever comes first.
The asset management firm mentioned on X:
“Because we believe in #bitcoin so much, starting tomorrow, you can invest
in VanEck Bitcoin Trust (HODL) with no fees until March 31, 2025.”
“If the Trust’s assets exceed $1.5 billion before
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, the weighted average of
those fee rates. After March 31, 2025, the Sponsor Fee will be 0.20%.”
IMPORTANT UPDATE!
Because we believe in #bitcoin so much, starting tomorrow, you can invest in VanEck Bitcoin Trust (HODL) with no fees until March 31st, 2025.*
*During the period commencing on March 12, 2024, and ending on March 31, 2025, the Sponsor will waive the entire…
— VanEck (@vaneck_us) March 11, 2024
VanEck’s move comes amidst stiff competition within
the Bitcoin ETF arena. While its previous fee of 0.2% was already among the
lowest, competitors such as BlackRock, Fidelity, Invesco, WisdomTree, and
Valkyrie charge slightly higher fees, around 0.25%.
Notably, Franklin Templeton is the only one charging a
lower fee of 0.19%. However, the effectiveness of this move by VanEck remains
to be seen, as it depends on factors such as market sentiment, regulatory
developments, and Bitcoin’s price trajectory.
VanEck has announced a temporary reduction of its
management fee to zero. Despite its fervent belief in Bitcoin, the asset
manager behind the spot bitcoin exchange-traded fund (ETF) named HODL has
struggled to amass investments into its fund.
According to a report by Coindesk, the firm’s assets
managed under HODL stand a little over $305 million, significantly below its
competitors. Thus, VanEck has declared a fee waiver for its Bitcoin ETF, HODL,
effective until March 31, 2025, or until the fund reaches $1.5 billion in
assets, whichever comes first.
The asset management firm mentioned on X:
“Because we believe in #bitcoin so much, starting…
