VanEck has announced a temporary reduction of its management fee to zero. Despite its fervent belief in Bitcoin, the asset manager behind the spot bitcoin exchange-traded fund (ETF) named HODL has struggled to amass investments into its fund.

According to a report by Coindesk, the firm’s assets managed under HODL stand a little over $305 million, significantly below its competitors. Thus, VanEck has declared a fee waiver for its Bitcoin ETF, HODL, effective until March 31, 2025, or until the fund reaches $1.5 billion in assets, whichever comes first.

VanEck’s HODL Lures Investors with Zero Fees

The asset management firm mentioned on X: “Because we believe in #bitcoin so much, starting tomorrow, you can invest in VanEck Bitcoin Trust (HODL) with no fees until March 31, 2025.”

“If the Trust’s assets exceed $1.5 billion before March 31, 2025, the Sponsor Fee charged on assets over $1.5 billion will be 0.20%. All investors will incur the same Sponsor Fee, the weighted average of those fee rates. After March 31, 2025, the Sponsor Fee will be 0.20%.”

IMPORTANT UPDATE!Because we believe in #bitcoin so much, starting tomorrow, you can invest in VanEck Bitcoin Trust (HODL) with no fees until March 31st, 2025.**During the period commencing on March 12, 2024, and ending on March 31, 2025, the Sponsor will waive the entire…

— VanEck (@vaneck_us) March 11, 2024

VanEck’s move comes amidst stiff competition within the Bitcoin ETF arena. While its previous fee of 0.2% was already among the lowest, competitors such as BlackRock, Fidelity, Invesco, WisdomTree, and Valkyrie charge slightly higher fees, around 0.25%.

Notably, Franklin Templeton is the only one charging a lower fee of 0.19%. However, the effectiveness of this move by VanEck remains to be seen, as it depends on factors such as market sentiment, regulatory developments, and Bitcoin’s price trajectory.

This article was written by Jared Kirui at www.financemagnates.com.CryptoCurrencyRead More

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