Investors are flocking to VanEck’s spot Bitcoin exchange-traded fund (ETF), the VanEck Bitcoin Trust (HODL), after the company slashed its sponsor fees for the first $1.5 billion for a year in a strategic move to attract capital.
This surge comes amidst intensifying competition within the cryptocurrency ETF space, fueled by soaring investor demand for Bitcoin exposure as the price of the flagship cryptocurrency rises to new highs.
Bitcoin is at the time of writing trading at $72,500 after making a new all-time high above $73,500 earlier today and after rising more than 70% so far this year, as demand from institutional investors keeps on growing.
The VanEck Bitcoin Trust, currently managing roughly $516 million, has witnessed a net inflow of $333 million since its January launch. The bulk of this influx materialized over the past two days, following the fee reduction from 0.20% to 0%, according to a Bloomberg report.
The aggressive fee cut, which will last until March 31, 2025, was followed by record inflows of $119 million for HODL, propelling it to become the sixth-largest U.S.-listed spot Bitcoin ETF, surpassing rivals Invesco (BTCO) and Valkyrie (BRRR) with over 6,000 Bitcoin – roughly $440 million – in assets under management.
Spot Bitcoin exchange-traded funds have, since launch, seen net inflows of more than $11.1 billion, according to data shared by BitMEX Research, with over $1 billion of net inflows being seen on March 12.
As CryptoGlobe reported, cryptocurrency investment products saw record weekly inflows of $2.7 billion over the past week, with Bitcoin and Solana investment products seeing more inflows than others, while Ethereum products saw outflows of $2.1 million.
According to CoinShares’ latest Digital Asset Fund Flows report, Bitcoin investment products saw inflows of $2.63 billion over the past week, while Solana-focused investment products saw $23.6 million of inflows, towering above products offering exposure to other altcoins.
Featured image via Unsplash.
