VanEck Temporarily Cuts Bitcoin ETF Fee to Zero After Lagging in Assets

HODL, VanEck’s spot bitcoin exchange-traded fund (ETF), has so far attracted a little over $305 million in assets, which is far below most of its competitors.

AccessTimeIconMar 11, 2024 at 6:16 p.m. UTC
Updated Mar 11, 2024 at 6:18 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now
  • VanEck will drop the management fee for its spot bitcoin ETF, HODL, until March 31, 2025.
  • Previously, it had charged a 0.2% fee, which is below that of its competitors.
  • Key Events You Shouldn't Miss at Consensus 2024
    02:13
    Key Events You Shouldn't Miss at Consensus 2024
  • What to Expect From Consensus 2024
    11:19
    What to Expect From Consensus 2024
  • Will Solana and Altcoins Dominate the Market Next?
    13:29
    Will Solana and Altcoins Dominate the Market Next?
  • What's Next for FIT21?
    07:15
    What's Next for FIT21?
  • 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.

    The asset manager said it will drop the fee until March 31, 2025, unless the fund reaches $1.5 billion in assets before that date, VanEck noted in a post on social media platform X.

    HODL previously charged investors a fee of 0.2%, which was already one of the lowest among the competitors. For example, BlackRock, Fidelity, Invesco, WisdomTree, and Valkyrie charge 0.25%. Only Franklin Templeton charges a lower fee of 0.19%.

    While VanEck claims that the fee drop is because it believes in bitcoin "so much," it's possible that a less successful start of the fund, compared to its competitors, might have played a role in it.

    HODL currently manages just over $305 million in assets under management (AUM), while most other funds have long crossed the $1 billion mark. BlackRock’s iShares Bitcoin Fund (IBIT) currently stands at $13 billion in AUM, the most among the issuers, excluding Grayscale’s Bitcoin Trust (GBTC), which already had almost $30 billion lined up when it joined the race.

    Edited by Aoyon Ashraf.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Helene Braun

    Helene is a New York-based reporter covering Wall Street, the rise of the spot bitcoin ETFs and crypto exchanges. She is also the co-host of CoinDesk's Markets Daily show. Helene is a graduate of New York University's business and economic reporting program and has appeared on CBS News, YahooFinance and Nasdaq TradeTalks. She holds BTC and ETH.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



    Read more about