VanEck Lowers Bitcoin ETF Fees to Zero, Undercutting BlackRock

VanEck is waiving sponsor fees for its spot Bitcoin ETF, the New York-based investment firm said in a updated prospectus filed with the U.S. Securities and Exchange Commission on Monday.

“We listen to our clients and understand the importance of continually reassessing our fee structures to align with their expectations and the dynamic nature of the market,” Kyle DaCruz, VanEck Director of Digital Assets, told Decrypt. “This fee waiver reflects our dedication to providing competitive investment opportunities that meet the needs of investors, and we believe it may encourage even more investors to explore the potential of Bitcoin as part of their investment strategy.”

The filing references a broader prospectus filed on March 1 and says the company is executing its previously reserved right to waive fees.

“During the period commencing on March 12, 2024, and ending on March 31, 2025, the Sponsor will waive the entire Sponsor Fee for the first $1.5 billion of the Trust’s assets,” the company asserted. VanEck’s spot Bitcoin ETF has drawn $297 million so far, according to its website.

If its Bitcoin Trust assets exceed $1.5 billion before March 31, 2025, the sponsor fee charged on assets over $1.5 billion will be 0.20%. That will also be the fee following the expiration of the waiver.

BlackRock, VanEck, and WisdtomTree revealed their spot Bitcoin ETF fees in January. VanEck reported that the fee for its Bitcoin ETF would be 0.25%, with BlackRock offering 0.2% and WisdomTree with a higher 0.5%.

BlackRock remains far and away the largest and most active spot Bitcoin ETF providers: its iShares Bitcoin Trust (IBIT) set a new trading day record last week, attracting close to $3.8 billion in volume in 24 hours, and today has over $13 billion in assets under management.

Angling for an edge, other firms launched with zero percent fees: Bitwise Bitcoin ETF, Ark 21 Shares Bitcoin ETF, and Invesco Galaxy Bitcoin ETF. Now VanEck has joined the no-fee club.

VanEck did not immediately respond to Decrypt’s request for comment.

VanEck maintains that it may occasionally waive all or part of its sponsor fee at its discretion, adding that the firm is under no obligation to waive any fees, and that any fee waiver is limited to what is stated in the prospectus.

VanEck’s fee waiver comes as Bitcoin ETF issuers attempt to lure investors into their bed of products focused on the digital asset. In January, the SEC approved 11 Bitcoin ETFs, including VanEck’s Bitcoin Trust ETF.

Edited by Ryan Ozawa. Updated to add a comment from VanEck.

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