This distinction became obvious when GBTC saw massive outflows after its futures-linked ETF was changed to a spot ETF. Many futures-linked GBTC investors sold their shares and bought cheaper ETFs. Investors carefully evaluate ETF sponsor fees when investing.
VanEck waived costs on its spot Bitcoin ETF, HODL. The investment management firm will waive the HODL ETF charge until it hits $1.5 billion in assets under management or March 31, 2025. HODL's AUM is $300 million, so $1.5 billion is a substantial jump.
Before the announcement, HODL had one of the lowest ETF fees. Its expense ratio was 0.2%.
VanEck's director of digital assets products said the fee waiver shows the company's commitment to competitive investing alternatives and may encourage more investors to try Bitcoin.
VanEck CEO Jan Van Eck told CNBC that "we are just in the middle innings of a bull market" and that the Bitcoin cycle is "we are still right in the middle of it." Bitcoin excelled in 2024. YTD and 6-month gains exceed 60% and 150%, respectively. It topped $73,000 in early March.
VanEck is one of many ETFs that have boosted Bitcoin. These ETFs have attracted individual and institutional investors. How the fee drop plays out will be intriguing. HODL will reach $1.5 billion in assets under management how fast? Will total fund flows change? How would that affect Bitcoin prices?
With many questions and possible situations from VanEck decreasing fees, Bitcoin, HODL, and other spot ETFs will need to be monitored.
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