VanEck Spot Bitcoin ETF Sees Record $119M Inflow After Fee Cut to 0%

VanEck waived the management fee for its spot bitcoin ETF for a year or until it reaches $1.5 billion in assets under management.

AccessTimeIconMar 12, 2024 at 3:37 p.m. UTC
Updated Mar 12, 2024 at 3:39 p.m. UTC

Asset manager VanEck's spot bitcoin (BTC) exchange-traded fund (ETF) saw record daily inflows on Monday after cutting management fees to 0% for a year to make it more attractive.

The VanEck Bitcoin Trust (HODL) attracted $119 million in fresh funds during the day, adding over 1,600 bitcoin, the most by a wide margin since its launch in January, data compiled by BitMEX Research shows.

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  • VanEck lowered the management fee from 0.2% until March 31, 2025, unless it reaches $1.5 billion in assets under management, making it more attractive in a fierce competition between the newly listed bitcoin ETFs.

    With Monday's inflows, VanEck's offering became the sixth-largest U.S.-listed spot bitcoin ETF, handling more than 6,000 BTC ($440 million) in assets under management and overtaking rivals Invesco (BTCO) and Valkyrie (BRRR), according to BitMEX data.

    Spot bitcoin ETFs have enjoyed a streak of strong inflows as the bitcoin price rallied past $72,000 to record highs. Monday brought almost $1 billion of inflows for the nine new offerings combined, more than compensating for $500 million of outflows from the incumbent Grayscale Bitcoin Trust (GBTC), BitMEX data show.

    Last week, digital asset fund inflows hit record high of $2.7 billion, with bitcoin products attracting $2.6 billion of all flows, CoinShares reported.

    Edited by Sheldon Reback.

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    Krisztian  Sandor

    Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.