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CDS Crypto News VanEck Cuts Spot Bitcoin ETF Fee to 0.20% in Bid for Competitive Advantage

Crypto News

VanEck Cuts Spot Bitcoin ETF Fee to 0.20% in Bid for Competitive Advantage

Most US spot Bitcoin ETF issuers have established sponsor fees ranging from 0.19% to 0.25%. However, given the intense competition in the market, further reductions in fees are highly likely in the near future.

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Vaneck Cuts Spot Bitcoin Etf Fee To 0.20% In Bid For Competitive Advantage

Crypto News– The surge in demand for spot Bitcoin exchange-traded funds (ETFs) in the US has prompted issuers to significantly reduce fees to stay competitive. With Grayscale Investments’ GBTC charging fees exceeding 1%, other US spot Bitcoin ETF issuers have been engaged in a sponsor-fee battle. This has provided wealth managers with a wide array of options, with liquidity not posing a concern.

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VanEck Cuts Spot Bitcoin ETF Fee to 0.20% in Bid for Competitive Advantage

According to a supplementary filing dated February 15, VanEck Bitcoin Trust (HODL) will lower its operating fees from 0.25% to 0.20% effective February 21. With approximately $187.74 million in total assets under management, HODL is poised to enhance its competitiveness after this fee reduction takes effect next Wednesday. Wealth managers are particularly interested in minimizing operating expenses to optimize returns for their clients.

A spokesperson from VanEck commented, ‘This fee reduction reflects our commitment to provide value and improve access to investors, and helps ensure investors continue to benefit from one of the most competitive offerings in the bitcoin ETF space.

Intensifying Competition in Fee Reductions

The Grayscale Bitcoin Trust (GBTC) stands out as the sole spot Bitcoin issuer with fixed and relatively high operational costs exceeding 1 percent. Consequently, GBTC has witnessed significant daily cash outflows since the approval of spot Bitcoin ETFs last month. In contrast, other fund managers have long been engaged in fee competition, a trend that predates the approval of spot Bitcoin ETFs.

Interestingly, the fee wars in the US have spilled over into other regions, compelling European-based fund managers to lower their fees to remain competitive. Just this week, the Fidelity Physical Bitcoin ETP (FBTC) announced a reduction in its operating costs from 0.75 percent to 0.35 percent.

Last month, both the Invesco Galaxy Bitcoin ETF (BTCO) and the WisdomTree Bitcoin Fund (BTCW) slashed their fees to 0.39 percent and 0.35 percent, respectively. Similarly, CoinShares fund managers also reduced fees for their spot Bitcoin ETFs to 0.35 percent.