For those on the fence about investing in bitcoin, now may be the time.
On Tuesday, VanEck began waiving its entire sponsor fee on its bitcoin ETF, the $320 million VanEck Bitcoin Trust (HODL ). Previously, VanEck charged a 0.20% management fee for the fund.
This change will remain in effect through March 31, 2025, and will end early if the ETF reaches $1.5 billion in AUM. Once either threshold is reached, the fund’s management fee will return to 0.20%.
“This fee waiver reflects our dedication to providing competitive investment opportunities that meet the needs of investors, and we believe it may encourage even more investors to explore the potential of bitcoin as part of their investment strategy,” said Kyle DaCruz, VanEck’s director of digital assets product.
This is not the first time HODL has experienced a fee cut. The fund launched in January 2024 with a 0.25% expense ratio, which was cut down to 0.20% in February. Spot bitcoin ETF issuers have been cutting fees in order to appeal to a broader investor base. The issuer’s decision to cut fees altogether can certainly help HODL maintain its competitiveness.
See More: Fast Start for HODL Leads to Fast Fee Cut
Despite launching just a few months ago, HODL has been off to a very good start. The fund is currently up 51.79% over the last month. Additionally, the fund has seen more than $60.4 million in net flows during the same period, contributing to a total of more than $305 in assets under management.
It’s no understatement to say that 2024 has been a good year for bitcoin. Less than a week ago, bitcoin surpassed the $70K mark for the first time in the digital currency’s history. This comes less than a month after the cryptocurrency returned to the $60,000 mark for the first time since 2021. Spot bitcoin ETFs have proven to be a valuable option for investors looking to ride the cryptocurrency’s wave.
VanEck currently has 68 ETFs listed in the U.S. These funds represent over $74 billion in assets under management. The issuer’s largest ETF, the VanEck Semiconductor ETF (SMH ), currently has more than $17.2 billion in AUM.
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