VanEck Slashes Spot Bitcoin ETF Fees, Joins Industry-wide Trend

• Sponsor fees for VanEck’s Bitcoin ETF has been dropped from 0.25% to 0.20%.
• This new change would take effect on February 21.

Spot Bitcoin ETF issuers are still at battle over fees, and VanEck has quietly shifted gears by slashing fees. A 5 bps drop in the sponsor fee for VanEck’s spot Bitcoin ETF is detailed in a document the company made with the U.S SEC. Sponsor fees for VanEck’s Bitcoin ETF will drop from 0.25% to 0.20% as a result of the proposed cut.

This new change would take effect on February 21. Along with Bitwise and Valkyrie, VanEck will now be among the spot Bitcoin issuers with the lowest sponsor cost thanks to this change.

Fierce Competition

Moreover, after the SEC approved a flood of applications in January, several asset management companies began cutting their sponsor fees. Also, the alliance of Invesco and Galaxy Digital notified the SEC of a change to its fees in a comparable filing around two weeks ago.

The Bitcoin ETF from Invesco Galaxy has had its costs reduced from 39 basis points to 25 basis points, a decrease of 14 basis points. This came after the issuer provided a zero-percent fee waiver for the spot Bitcoin ETF’s first six months of operation.

Spot Bitcoin ETFs such as FBTC (Fidelity), BRRR (Valkyrie), and IBTC (BlackRock) all have sponsor fees of 0.25%. Grayscale Investments seems certain in its 1.5% sponsor fee, even if rival issuers are implementing lower rates. Citing the trust’s unparalleled track record and diverse investor base, the firm’s CEO Michael Sonnenshein is certain that the business can sustain the substantial charge.

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