VanEck Bitcoin ETF's Zero-Fee Period Ends After Missing Growth Target by $1.424 Billion

The zero-sponsor-fee period for VanEck's Bitcoin ETF (HODL) has officially come to an end on July 31. The fund had $1.076 billion in net assets, but fell short of its growth target by $1.424 billion.

This means that from now on, the entire trust will incur a 0.20% sponsor fee, which translates to about $2.15 million per year at the current asset level. For investors, this equates to around $20 in annual fees for every $10,000 invested.

The waiver's mechanics are more complex than just a simple cap. VanEck waived the sponsor fee on the first $2.5 billion of trust assets through July 31. Had the fund grown beyond that level before the deadline, only assets above $2.5 billion would have incurred a weighted sponsor fee.

HODL's post-waiver fee will now match Bitwise Bitcoin ETF's fee, but be slightly higher than Franklin Bitcoin ETF's 0.19% fee.