VanEck Bold Fee Cut Wins $119M Inflow into Bitcoin ETF
Highlights
- VanEck Bitcoin Trust (HODL) records unprecedented daily inflow following the fee waiver announcement.
- The fund added over 1,600 Bitcoin, marking its largest influx since the January launch.
- VanEck's strategic fee reduction aims to enhance competitiveness among new Bitcoin ETFs.
VanEck Bitcoin Trust (HODL), the VanEck Bitcoin ETF, recorded an unmatched daily inflow on Monday. This rally occurred immediately after the asset manager had declared a brave decision to waive management fees for 0% for an entire year. The reduction from the earlier rate of 0.2% is expected to remain effective until March 31, 2025, or until the BTC ETF reaches $1.5 billion in assets under management. The project was aimed at strengthening the fund’s attractiveness relative to the growing number of Bitcoin ETFs that were newly launched.
The VanEck Bitcoin Trust gathered another $119 million on the day of this announcement, adding more than 1,600 bitcoins to its assets. This inflow was the biggest that the ETF had experienced since its launch in January, according to BitMEX Research. The fund is now managing assets in excess of 6,000 BTC, or about $440 million, which will make it the sixth-largest U.S. spot Bitcoin ETF. This strategy helped VanEck’s offering surpass its rivals, which include Invesco (BTCO) and Valkyrie (BRRR), unveiling a new frontier for the Bitcoin ETF.
Bitcoin ETFs Surge Amidst Price Rally
The market for Bitcoin ETFs has been receiving a flood of robust purchases alongside a surge in Bitcoin prices above the $72,000 level, reaching unprecedented levels. The growing hype around Bitcoin ETFs is a sign of investors’ increasing trust in digital assets as a viable investment class. VanEck’s one-day record inflow was matched by almost $1 billion in inflows from the nine new Bitcoin ETF offerings. This significant amount more than made up for the $500 million outflows from the Grayscale Bitcoin Trust (GBTC), pointing to the changing dynamics in the digital asset fund landscape.
In addition, digital asset funds continue with their record-breaking trend, with CoinShares reporting more than $2.7 billion in inflows from last week. Bitcoin products were responsible for $2.6 billion of this total, highlighting the dominant position that Bitcoin holds in the digital asset marketplace. This trend shows strong demand among investors for Bitcoin exposure via regulated financial products such as ETFs.
Surge in Digital Asset Fund Inflows
The overall landscape for Bitcoin ETFs has been markedly bullish, with Monday’s combined inflows for the nine new offerings reaching nearly $1 billion. This surge more than offset the $500 million in outflows experienced by the incumbent Grayscale Bitcoin Trust (GBTC). Additionally, a recent report from CoinShares indicated that last week witnessed record-high inflows into digital asset funds, totaling $2.7 billion, with Bitcoin products alone accounting for $2.6 billion of these flows.
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