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VanEck waives fees for Bitcoin Trust to spur investment

EditorEmilio Ghigini
Published 03/12/2024, 09:08 AM
Updated 03/12/2024, 09:08 AM
© Reuters.

NEW YORK - Investment management firm VanEck has announced the waiver of its sponsor fee for the VanEck Bitcoin Trust (HODL), effective immediately. This strategic move aims to provide investors with more competitive pricing and encourage investment in the spot bitcoin market.

The fee waiver applies from today until March 31, 2025, for the first $1.5 billion in assets under management within the Trust. Should the Trust's assets exceed this threshold before the end date, a 0.20% fee will be imposed on the excess. Post-March 31, 2025, the sponsor fee will standardize at 0.20%.

Kyle DaCruz, Director of Digital Assets Product at VanEck, emphasized the company's focus on aligning with client expectations and market dynamics. He expressed the belief that this initiative might attract more investors to consider bitcoin in their portfolios.

VanEck has been a pioneer in the cryptocurrency investment space, filing for a bitcoin-linked ETF as early as 2017. Its European division currently oversees 12 crypto ETPs. The firm's digital assets offerings include the VanEck Ethereum Strategy ETF (EFUT), which targets Ethereum futures, and the VanEck Digital Transformation ETF (DAPP), focused on companies propelling the digital assets economy.

This announcement is grounded in VanEck's tradition of identifying and capitalizing on emerging investment trends. The firm, founded in 1955, has a long-standing practice of prioritizing client interests, evident in its diverse range of active and passive investment strategies.

Investors are advised to consider the risks associated with the Trust, which include the inherent volatility of bitcoin and the lack of regulatory protections compared to traditional mutual funds. The Trust's objective is to mirror the price of bitcoin, net of expenses, without actively seeking to outperform the market.

The information for this article is based on a press release statement from VanEck.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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