Until March 31, 2025, VanEck will waive the management fee for its spot bitcoin ETF, HODL. Previously, the fee stood at 0.2%, lower than that of its competitors.
VanEck has announced a temporary reduction of management fees to zero for its spot bitcoin exchange-traded fund (ETF), HODL, due to its assets lagging significantly behind competitors. The fee waiver will be effective until March 31, 2025, unless the fund accumulates $1.5 billion in assets before that date, as stated by VanEck on the social media platform X.
Previously, HODL charged investors a fee of 0.2%, already among the lowest compared to competitors such as BlackRock, Fidelity, Invesco, WisdomTree, and Valkyrie, which charge 0.25%. Franklin Templeton is the only one with a lower fee of 0.19%.
VanEck attributes the fee reduction to its strong belief in bitcoin, although the fund’s slower growth compared to competitors may also be a factor. Currently, HODL manages just over $305 million in assets under management (AUM), while many other funds have surpassed the $1 billion mark. BlackRock’s iShares Bitcoin Fund (IBIT) leads with $13 billion in AUM, excluding Grayscale’s Bitcoin Trust (GBTC), which had nearly $30 billion at the start of its participation in the market.