Although VanEck's temporary zero fees have boosted the adoption of Bitcoin, the asset managers behind VanEckBitcoin Trust (HODL) 's spot Bitcoin exchange-traded fund (ETF) have struggled to accumulate investments for the fund.。

HODL manages slightly more assets than 3.$5 billion, significantly lower than its competitors。As a result, VanEck announced an exemption from the fund's fees, valid until March 31, 2025, or the fund's assets reached $1.5 billion (whichever comes first)。

HODL Attracts Investors With Zero Fees

The asset manager mentioned on X: "Because we very much believe in # Bitcoin, starting tomorrow, no fees will be charged for investments in HODL until March 31, 2025; if the trust's assets exceed $1.5 billion by March 31, 2025, assets exceeding $1.5 billion will be charged 0.20% sponsorship fee; all investors will bear the same sponsorship fee, which is the weighted average of the above rates。After March 31, 2025, the sponsor fee will be 0.20%。"

VanEck's move comes amid fierce competition in the Bitcoin ETF space。Although VanEck before 0.The 2% fee is already the lowest, but competitors such as BlackRock, Fidelity, Invesco, WisdomTree and Valkyrie charge slightly more, around 0.25%。

Notably, Franklin Templeton was the only one to charge 0.19% of companies with lower fees。However, the effect of VanEck's move remains to be seen, as it depends on factors such as market sentiment, regulatory dynamics and bitcoin price movements.。

Cryptocurrency rally drives surge in investment

During the recent historic rally in the cryptocurrency market, institutional investors reportedly poured record amounts of money into bitcoin exchange-traded funds (ETFs), with bitcoin prices soaring and market sentiment reaching unprecedented levels.。

The launch of the Bitcoin Spot ETF in January 2024 has democratized access to digital assets, attracting investors from wealth managers to retail traders.。BlackRock's iShares Bitcoin Trust has attracted a record amount of institutional capital, flooding 5 in a single day..$200 million。

Market analysts attribute the influx of investments to the convenience of trading Bitcoin through ETFs and the allure of portfolio diversification。Notably, retail investors are driving this growth, reflecting the growing acceptance of cryptocurrencies.。