VanEck Reduces Bitcoin ETF Fees To Zero

VanEck Reduces Bitcoin ETF Fees To Zero

On Monday, an updated prospectus was filed by VanEck with the US Securities and Exchange Commission (SEC).

The New York-based investment firm said in the prospectus that it was waiving the sponsor fees associated with its spot Bitcoin ETF.

The statement

VanEck Director of Digital Assets, Kyle DaCruz, said that they pay attention to their clients and are continuously reassessing their fee structures to align with the market’s dynamic nature and customers’ expectations.

He said that the decision to waive the fee was a reflection of their dedication to providing competitive investment opportunities in accordance with the needs of the investors.

He went on to say that it was likely to encourage more investors to explore Bitcoin’s potential as part of their investment strategy.

The latest filing referenced a broader prospectus that the company had filed back on March 1st and said that the firm was executing its right to waive fees that had been previously reserved.

The company said that between March 12th, 2024, and March 31st, 2024, they will waive the sponsor fee for the first $1.5 billion that would be invested in the Trust.

According to VanEck’s website, its Bitcoin ETF has managed to record a total inflow of about $297 million so far.

The fees

If the total value of assets in its Bitcoin Trust surpasses the $1.5 billion mark before March 31st, 2024, then there will be a sponsor fee of 0.20% applicable to the assets.

Moreover, a fee would also be applicable after the waiver expires. The spot Bitcoin ETF fees had been revealed back in January by VanEck, WisdomTree, and BlackRock.

VanEck had announced back then that its spot Bitcoin ETF fee would be about 0.25%, while BlackRock had offered 0.20% and WisdomTree had offered a higher fee at 0.5%.

So far, the largest and most active spot Bitcoin ETF in the market is that of BlackRock. The previous week saw its iShares Bitcoin Trust (IBIT) set a new trading day record.

The details

In just 24 hours, the ETF had managed to attract a volume of about $3.8 billion and its total assets under management had already surpassed the $13 billion mark.

To gain an edge over their competition, other companies launched their spot Bitcoin ETFs with zero fees.

These included Invesco Galaxy Bitcoin ETF, Ark 21 Shares Bitcoin ETF, and Bitwise Bitcoin ETF. VanEck has also become a part of the no-fee club now.

According to VanEck, it may decide to waive of part, or all of its sponsor fees occasionally at its discretion and added that the company is not obligated to waive any fees.

It also said that any fee waiver is limited to what it has mentioned in the prospectus. The fee waiver from VanEck comes as Bitcoin ETF issuers are trying to attract investors.

The SEC granted approval to 11 spot Bitcoin ETFs together in January, which means there is a great deal of competition in the market.