VanEck slashes spot Bitcoin ETF fee to 0.20%; Fidelity cuts EU ETP fee to 0.35% VanEck slashes spot Bitcoin ETF fee to 0.20%; Fidelity cuts EU ETP fee to 0.35%
Asset managers engage in aggressive fee reductions amidst growing Bitcoin ETF and ETP competition.
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Updated: Feb. 15, 2024 at 10:01 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
VanEck will reduce fees on its spot Bitcoin ETF later this month, according to a filing with the US Securities and Exchange Commission (SEC) on Feb. 15.
The firm said that its VanEck Bitcoin Trust (HODL) will include a unified sponsor fee of 0.20% when trading begins on Feb. 21. Currently, that fee is 0.25%.
In its original S-1 statement, VanEck described the sponsor fee as an expense that is “paid by the Trust to the Sponsor as compensation for services performed under the Trust Agreement.” The filing identifies the trust as the VanEck Bitcoin Trust and identifies the sponsor as VanEck Digital Assets, LLC. Sponsor fees can affect the overall performance of the fund in question.
Separate reports from ETF.com on Feb. 14 indicate that Fidelity has reduced the total expense ratio (TER) on one of its offerings from 0.75% to 0.35%.
However, that change applies to Fidelity’s European product, the Fidelity Physical Bitcoin ETP, instead of its US-listed Fidelity Wise Origin Bitcoin Fund (FBTC).
BTC products locked in ‘fee war’
VanEck’s adjustment is the latest move in a US “fee war” in which asset managers have competitively reduced sponsor fees. Several asset managers, including Grayscale, Ark, and BlackRock, reduced spot Bitcoin ETF fees around the time of approval on Jan. 10. Another more recent change saw Invesco and Galaxy announce a fee cut on their spot Bitcoin ETF (BTCO) on Jan. 29.
According to data from Nerdwallet, all US spot Bitcoin ETFs apart from Grayscale have fees between 0.19% and 0.25%. Many ETFs also include temporary fee waivers.
A similar fee war exists among European Bitcoin ETPs. The Financial Times reported on Jan. 22 that Invesco and WisdomTree have reduced fees on their Bitcoin ETPs. Those firms have reduced fees to 0.39% and 0.35%, respectively, roughly in line with Fidelity’s 0.35% cut.
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
VanEck
VanEck is a global investment manager with offices around the world, including New York, Australia, China, Germany, Netherlands and Switzerland.
Fidelity Investments
Fidelity Investments Inc., commonly referred to as Fidelity, is a multinational financial services corporation based in Boston, Massachusetts.
The VanEck Bitcoin Trust is an investment product that allows investors to gain exposure to Bitcoin through a traditional brokerage account.
The Fidelity Wise Origin Bitcoin Trust (FBTC) is a spot Bitcoin ETF that offers investors exposure to the price of Bitcoin.