VanEck Drops Fee on Its Spot Bitcoin ETF, HODL

The investment management firm announced a fee waiver for up to 24 months.

kent
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Research Lead
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Reviewed by: etf.com Staff
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Edited by: James Rubin

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, digital assets product 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.  

Kent Thune is Research Lead for etf.com, focusing on educational content, thought leadership, content management and search engine optimization. Before joining etf.com, he wrote for numerous investment websites, including Seeking Alpha and Kiplinger. 

 

Kent holds a Master of Business Administration (MBA) degree and is a practicing Certified Financial Planner (CFP®) with 25 years of experience managing investments, guiding clients through some of the worst economic and market environments in U.S. history. He has also served as an adjunct professor, teaching classes for The College of Charleston and Trident Technical College on the topics of retirement planning, business finance, and entrepreneurship. 

 

Kent founded a registered investment advisory firm in 2006 and is based in Hilton Head Island, SC, where he lives with his wife and two sons. Outside of work, Kent enjoys spending time with his family, playing guitar, and working on his philosophy book, which he plans to publish in the coming year.