VanEck reduces bitcoin ETF transaction costs to 0

VanEck has announced it is cutting transaction fees for its Bitcoin Trust ETF to 0 for the first $1.5 billion of funds through March 31, 2025. The ETF, which tracks the performance of bitcoin, currently manages $297.86 million with 4,299 bitcoin held.

IMPORTANT UPDATE!

Because we believe in #bitcoin so much, starting tomorrow, you can invest in VanEck Bitcoin Trust (HODL) with no fees until March 31st, 2025.*

*During the period commencing on March 12, 2024, and ending on March 31, 2025, the Sponsor will waive the entire…

— VanEck (@vaneck_us) March 11, 2024

VanEck reduces transaction costs to 0

“Because we believe so strongly in #bitcoin, from tomorrow you can invest in VanEck Bitcoin Trust (HODL) without costs until March 31, 2025,” the asset manager writes on X.

The VanEck Bitcoin Trust ETF was approved by the Securities and Exchange Commission (SEC) on January 4 this year. The fund currently has $297.86 million in assets under management, with 4,299 bitcoin in its possession. By tracking the performance of bitcoin, the fund has already achieved a return of 87.7%.

A price war has now been unleashed by ETF managers over the management costs of their funds. Before the arrival of competitors, the Grayscale Bitcoin Trust had annual management fees of 2%. The industry average has since fallen to below 0.30%.

$55 billion

Eric Balchunas, senior ETF analyst at Bloomberg, sees the ten spot Bitcoin ETFs listed in the US reaching an all-time high of $55 billion in combined assets under management and $110 billion in total trading volume. “If these were the figures at the end of the year, it is a success. To do it in eight weeks is simply absurd,” the analyst writes.

First two months officially in the books (it’s felt like six) and the ten bitcoin ETFs now have over $55b in assets with exactly double that in volume at $110b. If these were the numbers at the end of year I’d call them a success. To do it in eight weeks is simply absurd. pic.twitter.com/8YvzQZdYyJ

— Eric Balchunas (@EricBalchunas) March 11, 2024

The size of Bitcoin ETFs has exceeded that of S&P 500 Industrial ETFs but lags behind the assets under management of S&P 500 Low Volatility sector ETFs. It doesn’t even come close to the thousands of billions of dollars that are in gold ETFs.