Key takeaways:
- Until March 31, 2025, asset management VanEck will waive all sponsor fees for the first $1.5 billion of assets invested in its Bitcoin Trust ETF.
- ETF managers started a pricing war over the costs of managing their funds even as the SEC considered applications for spot Bitcoin ETFs.
Until March 31, 2025, asset management VanEck will waive all sponsor fees for the first $1.5 billion of assets invested in its Bitcoin Trust ETF.
The post from March 11 states that for funds over $1.5 billion, the sponsor fee is calculated as 0.20% of net assets under management. The manager of the assets wrote:
“Because we believe in #bitcoin so much, starting tomorrow, you can invest in VanEck Bitcoin Trust (HODL) with no fees until March 31, 2025,”
The US Securities and Exchange Commission (SEC) approved the VanEck Bitcoin Trust ETF on January 4. The fund is managed with $297.86 million in assets and 4,299 Bitcoin. Since its launch two months ago, the Exchange-Traded Fund (ETF) that tracks the performance of Bitcoin has returned 87.7%.
ETF managers started a pricing war over the costs of managing their funds even as the SEC considered applications for spot Bitcoin ETFs. Prior to competitors’ arrival, the Grayscale Bitcoin Trust charged 2% yearly management fees. Since then, the industry average has fallen below 0.30%.
The ten top Bitcoin ETFs listed in the United States have amassed an unprecedented amount of $110 billion in total traded volume and $55 billion in combined assets under management, according to research conducted the same day by Eric Balchunas, senior ETF analyst for Bloomberg.
Balchunas would consider them successful if these were the results at the end of the year. He wrote that completing it in eight weeks is just not realistic. He further added:
“That said, i wouldn’t get crazy with growth predictions like ‘they could challenge SPX ETFs’. Here’s look at them vs other categories. Tech ETFs (which is just one sector of US mkt) is massive. Plus hard to pass core categories when they used as satellite positions.”
Bitcoin ETFs are now larger than S&P 500 Industrial ETFs, but they still lag behind the billions of dollars managed in gold ETFs and the assets under management of S&P 500 Low Volatility sector ETFs. As of this writing, the price of Bitcoin is at a record high of $72,721.
In a press release on Monday, the UK’s FCA said it would not object to RIEs’ bids to establish a listed market segment for ETNs backed by cryptocurrency assets. This action is a sign that the crypto markets are becoming more institutionalized. According to the regulator’s statement, exchanges will be in charge of ensuring that sufficient restrictions are put in place to guarantee orderly trade and suitable protection of professional investors.
