VanEck reduces Bitcoin spot ETF fees to zero amid record-breaking inflows at all-time high

Asset management firm VanEck has announced that it will eliminate all sponsor fees for the first $1.5 billion of funds in its Bitcoin Trust ETF until March 31, 2025. The sponsor fee, which is currently set at 0.20% of net assets under management for funds exceeding $1.5 billion, will be waived to attract more investors to the VanEck Bitcoin Trust (HODL). The U.S. Securities and Exchange Commission approved the VanEck Bitcoin Trust ETF on January 4, and the fund currently holds $297.86 million in assets, consisting of 4,299 Bitcoin. Since its inception two months ago, the ETF has achieved a return of 87.7% by tracking the performance of Bitcoin. This move by VanEck comes as ETF managers engage in a price war, with management expenses dropping below 0.30%. In addition, Bloomberg’s senior ETF analyst, Eric Balchunas, highlighted that the ten spot Bitcoin ETFs listed in the U.S. have accumulated a record-high $55 billion in combined assets under management and $110 billion in total trading volume. Despite this achievement, Bitcoin ETFs still trail behind the assets managed by S&P 500 Low Volatility sector ETFs and gold ETFs, which manage trillions of dollars. As of the time of publication, Bitcoin is trading at a record-high price of $72,721.