VanEck Extends Fee Waiver for Bitcoin ETF to Attract More Investors

VanEck, a major asset management firm, has announced the extension of its fee waiver for the VanEck Bitcoin ETF (HODL), aiming to attract more investors in the competitive Bitcoin exchange-traded fund (ETF) market. According to a November 25 statement, the firm will extend the management fee waiver for the fund's first $2.5 billion in assets under management (AUM) until January 10, 2026.

Originally, the fee waiver was set to expire in March 2025 and applied only to the first $1.5 billion in AUM. However, due to increasing investor interest in Bitcoin and the overall positive outlook for the digital asset, VanEck decided to increase the asset threshold and extend the fee waiver period to encourage further participation in the fund.

Kyle DaCruz, VanEck’s director of digital asset products, commented on the decision, saying, “Our VanEck Bitcoin ETF is approaching the original $1.5 billion threshold, driven by investor enthusiasm around Bitcoin’s future prospects. We hope that by extending the fee waiver, more investors will explore the potential of Bitcoin and gain exposure to digital assets in their portfolios.”

The VanEck Bitcoin ETF typically charges a management fee of 0.20%, which is competitive but slightly higher than the fees charged by some of its competitors. For example, the Grayscale Bitcoin Mini Trust (BTC) charges a lower annual sponsor fee of 0.15%. Most BTC and Ether ETFs launched in 2025 initially offered fee waivers to attract investors, with many sponsors setting them to expire within six months to a year after the launch.

As of now, VanEck’s Bitcoin ETF has net assets of approximately $1.28 billion. While this places it behind some of its competitors, the fund has garnered significant attention. The largest Bitcoin ETF, iShares Bitcoin Trust (IBIT), manages around $46 billion in assets, according to BlackRock.

The Bitcoin ETF market has seen substantial growth since the launch of spot BTC ETFs in January 2024, with investor interest accelerating following the election of a crypto-friendly U.S. president, Donald Trump, on November 5. According to Bloomberg Intelligence, U.S. Bitcoin ETFs surpassed $100 billion in net assets for the first time on November 21, 2024.

Bryan Armour, director of passive strategies research at Morningstar, highlighted two key factors behind the rapid growth of spot Bitcoin ETFs: widespread Bitcoin adoption and the superior product offering. ETFs, Armour explained, allow new investors—particularly those unable or unwilling to set up a wallet and buy Bitcoin on a cryptocurrency exchange—to, to gain exposure to Bitcoin in a cost-effective manner. Additionally, Bitcoin ETFs offer benefits such as low trading fees, ease of access, and best-in-class storage practices, which further enhance their appeal to a broad range of investors.

VanEck’s decision to extend the fee waiver reflects the growing competition in the Bitcoin ETF market and the firm's commitment to attracting investors looking for a regulated and efficient way to invest in Bitcoin. As more spot BTC ETFs enter the market, this strategic move is designed to maintain VanEck’s position as a leading player in the digital assets space.